Financial Times , 1982, UK, English

rnvis

Timber, BwWing Materials, floating and
Plumbing EquipmeotlbrlheCcm^ractiDn
and Allied Trades; Nortksrap*oo€24M.

LONGINES

PUBLISHED 1 N LONDON AND JFRANK'FURT

Friday June U .1982 ,■■■■■' i\ *** 3 o P

S' I - t. Mi

World’s
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'CONTINENTAL SB4.1NG PRICES: * AUSTRIA Sdi; ISr tB-GlUM Ff35: PEMMAKK Krfi.50: FRANCE Fr 5.00; GERMANY DM 2.0; ITALY L 1.000; NETHEI

L MMAR\

GENERAL

BUSINESS

Miners in Equities
national off 8.8;

gilts fall
by 0.35

threat

A national miners’ strike
threatens the Coal' Board, un-
less it withdraws proposals to
end production at Snowdon
Colliery, Kent

Miners’ president .‘Arthur
Scargill said the union
unanimously faapked the Kent '
miners' resistance.

The union will demand a
meeting with the board on
Snowdon's future. It will also
call on Kent miners to with-
draw their local strike. call for
June 19. in favour of national
action, if the board does not
back dawn. . .

A decision on a national
strike wM be made at the
union executive's meeting on
July 1 and the recommendation
will go before the annual con-
ference in Inverness, a week
later. Back Pago v

Iraq ceasefire

Iraq effectively declared a uni-
lateral ceasefire in the 21-month
war with Iran. Page 4

Driver set ablaze

A Belfast bus driver, set ablaze .
by a bomb, still managed to
stop the bus and save his pas-
sengers. He is in hospital in a
“serious” condition.

Crash frills 22

A collision between a bus' and
oil tanker near Cirebon, west
Java, killed -22 people and
injured IS.

Mauritius tcTvote

Mauritius holds a ^General
Election today and Western

• EQUITIES continued to be
affected by international and
domestic troubles. The FT 30-
share index fen &8 to S78&.
Page 39.

• GILTS were also lower. The
Government Securities index
lost 0.35 to 69.78. Page 39

• STERLING lost 90 points to
$1,765, the lowest for . nearly
two months. It also fell to
DBT-L257S {DM.4285), FFr22.11
(FFr 11.17), SwFr 3.635 (SwFr
3.6525) and Y439.S (Y44L5). Its
trade-weighted index was 90A
(9tL9). Page 40

• DOLLAR fell to DM 2411
(DM 2.415) and FFr M95

, (FFr 6.297$) btuLwas unchanged
at SwFr 2.0575 and rose to
Y249.1 (Y248.0). Its trade-

weighted : Index - was 117.2
017.0). page 40 •

• GOLD fell' $115 to $326,875 In
London. In ' New York the
Comex June '• close ws $326.75
($327.5). Page 33 -

• TIN prices fell sharply again
in the absence of any support
buying from the buffer stock of

cen freight rule. Pnaria faces
defeat. Page f .

Soviet shuttle

An immannedSovtetspacecraft.
similar ' to the -U.S. : - space
shuttle, was recovered from the
Indian Ocean, after a flight last
week, it was reported in the
U.5. •

8500

y

, TIN

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Standard Grade
- london .

7000

Ae

T

Y

.y

A 982

- J

Boycott call ..

Two aboriginal representatives
left Australia in a . move to.
persuade black African nations
to boycott the Conan qnweahh
Games. They accused the
Queensland Government of
racist policies.

Teachers’ pay

Teachers were awarded a 6. per
cent, pay rise by an ; arbitration
tribunal. Education authorities
originally offered 3.4 per cent
but agreed to arbitration after
teachers took industrial action.
Page 11

Auctions moire .

Sotheby’s is dosing its Madison
Avenue and Las Angeles
galleries and using its purpose-
built York Avenue Galleries, in'
New York, instead. Page 10

England arrive

England’s "World Cup . soccer
squad arrived in Bilbao as
Spanish police warned fans to
carry identification at all time.

Test score

England were 27S ;for six.
(Randall 84 not out, .Edmonds
59 not' out) Itf the First Test
against India, at. Lord’s.

Brainchild ; !

Pregnant. Mrs. Dawh Clark, of
Wiggibton, Yorks, took a, GCE
human biology examination - in
a maternity hospital bed. She
is expecting her third child.

Briefly...

West "German ’..film director
Rainer Werner Fassbinder^ 36»
was found - dead in his Munich
flat. Page 17

Scotland opened • their Rugby
Union tour of Australia with a
44-1B win over a. Queensland
Country- XV.

the International Tin CouneiL
Cdsh till last 4230 to £6^20 a
tonnh “because of continued
speculative selling. Page 33

• WAiuL SX«EET was up 2.66
to 798^23 near the close. Pa^e 38

• EUROPEAN STEEL pro-
ducers appeared to -have failed
to- head off a . trade . confronta-
tion with the U.S. over imports.

• NIGERIA may withhold pay-
ment to British and other com-
panies tor goods ' worth several
million pounds delayed in leav-
ing their country of origin.

8 t ■

'• TEXTILE EXPORTERS are
resisting . strongly the EEC's
;attempts to impose strict import
^.quotas under the Multifibre
-Arrangement. Back Page

• SWEDISH INCOME TAX js
to come down to a maximum of
50 per cent by 1985 for most
workers. Page 5

BTR takeover of
Serck approved

•MONOPOLIES and Mergers
Commission approved BT-R’s
..takeover of Serck, valve manu-
facturer, after a seven-month
investigation. Page 11;
Editorial comment. Page 18
v« Argyll foods’ £8 im. offer
for sale - to finance its Allied
Suppliers acquisition has
attracted -. applications for only
25m of the 95m shares. Back
Page and Lex '

• TALBOT UK has given up
-hope pf sellihg-Robins and Day.

its retailing business. . Page 9

• SEAGRAM; .COMPANY.

Canadian' , distiller, saw third
quarter net earnings fail from
UJS:$ 59.9m .to $53.7m (£30.4m).
Page 28 : ■: ] . .

m Hiij/ Samuel group,

merchant banker, . reported . a
hear 42 per cent rise in net
profits to £15 A9m for the year
to end March. Page 20; Lex,
.- Back Page

• B; -ELLIOTT and Company,
machine tool- and engineering
group, reported' a pre-tax loss
of £L49m ; in the year to March
3r. compared with a profit of
£656m . Last- time. - Page 25

CHIEF PRICE CHANGES YESTERDAY

(Prices in pence unless otherwise indicated) r
RISES - - Glaxo:

Akrovd & Smiitbers 226 + 8 Ct Portland Ests...

Minet 221 +. 10 Kill Samuel- ......

Rolfe and Nolan... 72 + 14 • ICI —

Sfakis 70+5 Johnson Grp Clnrs

Tilbury .535 + 10 LCP '■*

. . Lloyds Bank

• FALLS Midland Bank

w Exnr 12pcCnv *85.;.£B7J — i ~ Ntmslo

Exqr 13ipc 1996 .;.£975r- f ; Northern Foods ...

Amersham 216 — 7 Notts Manufacturing

Applied Computer 191- — 7 , . Pilkington .

...0 rpr 456 — 10 Smiths Iwk

Blue Circle ........ .466 .- 8 Sonic Sound ;

British Aerospace... 216 — . 8 - Sothebys.

Christies Intel ...... 126 - 6 Vickers, w.

Distillers 178' — 7 Cons Gold -Fields...

Elliott (B.) 53 “ 13 Palabora.

Ferranti 770 - 20 Feto-Wallsend . ...

Firth (G. M.) .'....1 161 — 6 'RTZ ■

GEC 934 — 14 - Western Mining ...

711 ■— 7
152 - 10
160-7
324 - S
225 -7
54-5
390 - 12
340 - 15.
160 - 25
150 - 6
175 — S
228 -5
34S - 9
4S — ' 9
275 - 12
149 5

333 — 12
450-25
243 - W
377 ^ 20
188 '- .9

declines to
because

.«fc PORTUGAL ESC SO; SPAIN PtaSS; SWEDEN Kr 6.00; SWITZERLAND Fr 2.0: EIRE 50p: MALTA 30c

of action in Lebanon

BY REGINALD DALE AND JONATHAN CARR IN BONN

MR ALEXANDER HAIG, the
TT.S. Secretary of State, last
night turned down an invitation
to visit Jerusalem in the
strongest gesture of disapproval
yet made by Washington at
Israeli action in the Lebanon.

Although -the U.S. continued
its efforts to arrange a ceasefire
and an Israeli withdrawal Mr
Haig refused to travel to Jeru-
salem on the grounds of Israeli
inflexibility.

The Middle East conflict and
the arrival in Bonn of Prince
Saud, the Saudi Arabian
Foreign Minister — over-
shadowed the Nato summit
which bad originally been
intended as a major demon-
stration of Western unity at a
time of rising international
tension.

As it was. the heads of govern-
ment abandoned efforts To issue
a joint declaration on the con-
flict in Lebanon after it was
realised that the gulf between
the Europeans and the U.5. was
loo great. The EEC countries
had on Wednesday issued a
strong declaration accusing
Israel of flagrantly violating
international law and dan pline
the threat of economic sanc-
tions.

France also argued strongly
that it would be., inappropriate

for a Nato meeting lb issue such
a declaration as that reportedly
first proposed by Mrs Margaret
Thatcher.

This was later given as the
official reason for the declara-
tion's non-appearance. ....

From Bonn, President Ronald
Reagan made a second appeal,
to Mr Meoahem Begin, the

■ Nato peace plan

As 200,000 people demon-
started in Bonn against the -
unclear arms race, the Nato
conference . issued a pro-
• gramme “for peace and'
freedom.” It stressed that
- Nato would never use force
except in self-defence and
urged the Soviet Union to
join in showing “restraint
and responsibility." .Back
Page

Israeli Prime Minister, which
the White House said was
friendly but firm and persua-
sive. It was also revealed that
President Leonid Brezhnev of
the Soviet Union, had commu-
nicated his concern to Mr
Reagan.

In Tel Aviv. Israeli officials
said the American initiative
had been launched after Mr
Brezhnev had delivered a blunt
warning to the Americans to

halt the war before Russia’s
Syrian allies suffered a major
defeat in Lebanon at the hands
of the Israeli troops.

Mr Begin conferred by phone
with Mr Haig during the morn-
ing. A senior Israeli official
said that Mr Begin had told the
Americans that "Israel has no
objection to an immediate
ceasefire, but we cannot agree
to Syrian intervention in our
fight against the Palestinian
terrorists."

U.S. officials said Mr Reagan
bad made no threat to withhold
arms supplies in has letter. The
first American priority
remained a ceasefire and an
Israeli withdrawal before blame
for the conflict was apportioned
to either side, they said. At a
meeting with Mr Reagan
arranged at Saudi Arabia’s
request Prince Saud expressed
the great personal concern of
King Khaled but made no
threats. U.S. officials said.

Prince Saud, who also saw
Herr Hans Dietrich Genscher,
the 1 German . Foreign Minister,
was expected to fly on to London
for talks today with Mbs
Thatcher.

After the meeting. Prince
Saud said Israeli behaviour
could no longer be tolerated
and offered his country’s help
in arranging a ceasefire

Israel warns Syrian army
to leave Beirut quickly

BY DAVID LENNON IN TEL AVIV AND ANTHONY McDStMOTT IN BEIRUT

ISRAELI forces converging on
Beirut- yesterday- threatened to
occupy the - Lebanese -capital
and issued the Syrianforces in
the city with an ultimatum to
withdraw "within a few hours.”

. At the same time, elements
of the \LS. Sixth Fleet and the
Soviet Mediterranean naval
force were approaching the
Lebanese coast, according to
Israeli reports.

During . .the . day. . Israel
launched the heaviest air
attack of the war against’ Pales-
tinian targets in and around
Beirut, and the army . spokes-
man in Tel Aviv said that
Israeli and Syrian amour were
engaged in heavy and. pro-
longed battles ■. in the Bekaa
Valley in eastern Lebanon.-

Jsrael also claimed io -have
shot -dowh 20 Syrian aircraft
during the day. . bringing

’ claimed Syrian . losses' to 59
since Sunday. ' ^ • ■■ ' •

From early morning, waves
of ' Israeli aircraft made
repeated raids near Beirut air-
port and on the southern
suburbs where most Palestinian
guerrillas are based.

The refugee camps at Sabra
and Bouzj al-Branjneh were
believed to have been hit
several times, while Israeli gun-
boats shelled the coastline.

• A Syrian military spokesman
said Israeli attacks had
intensified . during • the day
particularly irT the Bekaa Valley
and near Beirut. He claimed
that Syrian ground and air
forces had inflicted heavy losses
on the Israelis.

Casualties in Beirut have
been heavy with stretchers
lined up outside the entrance
to the American University

Hospital, .'

ThBusandk of Beirut residents
fled to ■ the Christian, enclave
east of the city yesterday in
anticipation of an Israeli assault
on the mainly Moslem western
areas.

Leaflets dropped on Beirut
yesterday warned the Syrian
troops: “The Israeli forces out-
number yours and will shortly
take over the city."

. Written in Arabic, they urged
the troops to withdraw along
roads indicated on an accom-
panying map. They added that
Israel had allocated, large
* forces to the capture of the city
backed by tanks, aircraft and
naval vessels. The Israeli army
would carry out its mission
“quickly and accurately what-
ever the price.” •

Middle East details. Page 4;

Lombard, Page 19

Lowry called in over NHS row

BY PHILIP BASSETT AND PETER RIDDELL

THE GOVERNMENT yesterday
made a significant concession in
the increasingly bitter health
service dispute by railing ip. Mr-
Pat Lowry, chairman of the
Advisory, Cpnctiiation and Arbi-
tration Service, to act as. an
intermediary between the Gov-
ernment and the . striking
National Health Service unions.

However, the Government
has ruled out formal^ arbitration
m the dispute, by Acas. ' Mr
Norman RFowler, Secretary for
Health said in the Commons that
this would amount to little
more than splitting the differ-
ence between the two tides.

Mr Lowry is to.act in a private
and personal capacity to try to
seek common ground between
the two sides, Mr Fowler said.
Until that was achieved .there
was little point in any further
meetings between himself and
the unions.

Mr Lowry, an experienced
and tactful negotiator, will not

be empowered to put forward
any proposals on the dispute,
still less to make any pay offers.
Instead, he will act as a mes-
senger between the two sides.

Mr Fowler hoped that Mr
Lowry would succeed, but said:
“I ant bound to warn that the
present claims made by the
unions [which are seeking rises
of roughly 12 per cent] and
their actions are a substantial
barrier."

Mr Fowler repeated his hint
that the Government might
increase the 6.4 per cent offered
to nurses, but made it clear
that he had less sympathy for
the other health workers, who
have been offered 4 per cent
rises.

The Royal College of Nursing
had a no-strike agreement. But
tiie other unions were “ com-
mitted to a continuing campaign
of industrial action which puts
patient care at risk and that
fact must he considered a
barrier between us.” Following
two 24-hoor strikes, the unions

have called a third for June 23.

Mr FowJer said be was dose
to the RCN, and was due to
meet them soon.

Ministers bave so far firmly
. resisted making any further
, money available to the NHS. so
any pay rises above the existing
offer will have to be financed
from within the cash limit
announced in the Budget.

Mr Lowry’s discussions are
likely to focus on possible ways
of finding savings to finance any
Slightly higher . pay rises,
notably by a reduction in the.
number of jobs. But officials
last night stressed that patients’
services must be protected.

It is, however, clear that the
Government is prepared to move
only slightly on the size of pay
rises available to both nurses
and ancillary workers. Some
MPs considered that there might
be a margin of manoeuvre of 1
or 2 percentage points.

British Rail unmoved. Page 11;
Parliament, Page 12; Miners*
threat. Bads Page; Onslaught
on TebblL Back Page

CONTENTS

Third Worid debt the IMF toughens its

brief IS

Politics today: the gleam in - * Thatcher’s

eye ,/ 19

Technology^ laser scan at the super-
market 14

Commercial law: no sale to non-existent

Saudi corporation 15

Management: Pilkington rethinks tech-
nology -and marketing priorities ... 16

Editorial comment: Nato; Britain’s trade

record; merger control 18

Lombard: Anatole Kaletsky on the U.S.

and its friends 19

Taxes in China: law clarified for foreign

companies ' 32

Property column: public sector land

sale 34

Survey: USSR 21-24

American Nm _ 7

Appotatmmtt 32

Arts 17

BankHituni ........ 28

Bbh Rues 31

ComiabditiBs 33

Companies UK 20,25-27
Crossw o rd- . 17

EntertKiT. GuMs 17

EurwariMts 2B

European 'Nsm ... Z.3

European . Options 26

FT Actuaries 39

Foreign Exchanges m

Gold Mariutt ...... 33

Inti. Companies ... 26-30 Sharo Information 42, 42

Loader Psga

Utter* ........ .......

Le*

Lombard

London Options .-

Management

Men and Maflms

Money Markets...- 40

Oversea*

Parliament .*•••

PropSTpr

Prope rt y Advtg-

fttcmg

For latest Share Index phone 01-246 8036

ia

.Stock Matketa:

19 '

London

39

44

Wall Stnet

38

13

Boucsm

38

28

Technology

14

15

UK N*wss

13

Gcnerel

9.70

28

Labour

11

40

TV and fladlo

15

' 4 ;

Unit Trusts;

12

Authorised

40

34

Others

41

34-37

Weather

44

75

Worid Trade

8

World Value *

INTERIM STATEMENTS

Allied Lon. Prop.- 28

Clyde Blowers ... 25

McCorquadala . 26.

ANNUAL STATEMENTS

ACT 3D

8AT 25

BUPA 2D

Office aid Electron, . 26

fecorr* 19

Hill Samuel ' 20

LCP Holdings <4

Nat. Nederlendw ... 28

Statists* 27

Falklands plan ‘undeterred
by landing ships attack’

BY BRIDGET BLOOM. OffENCE CORRESPONDENT

BRITAIN’S PLANS to recapture
Port Stanley and repossess the
Falkland Islands bave not been
prejudiced by Tuesday’s attack
on British landing ships, Mr
John Nott, the Defence
Secretary, said yesterday.

Mr Nott refused to disclose
tbe level of casualties suffered
in tee attacks on the two landing
ships, which were unloading
men and supplies in the Fitzroy
area of East Falkland.

He said, in a Commons state-
ment teat such information
would assist the enemy and put
our own men at greater risk.
He gave little detail of the
action, but said he hoped to
bave more information soon.
Next of kin were being
informed.

Some observers were inter-
preting tbe attacks on the Sir
Galahad and Sir Tristam as
potentially more damaging than
the loss of HMS Coventry
nearly three weeks ago, but Mr
Nott put a brave face on the
Fitzroy incident

He described the task force’s
operation over the last two
months as “a series of major
victories with some setbacks.”

- Our forces have done
manifleentiy and will go for-
ward with another victory very
soon.” he said.

The British Government is
not prepared to Involve any
foreign country or the United
Nations in the administration
it plans to establish over the
Falkland Islands after they
are repossessed, according lo
those close to minister s in the
Inner cabinet. It apparently
wishes the administration to
be as familiar as possible to
the islanders and favours
sending Mr Rex Hunt back as
governor.

Mr William Whitelaw.
deputising for the Prime
Minister who is at the Nato
summit in Bonn, said earlier
that loss of British lives in the
Falklands made it “ unthink-
able” for Britain to negotiate
with Argentina about the future
of the islands.

Mr Cranley Onslow. Minister
of State at the Foreign Office,
underlined tee Government's
tough stance. He said in a
written answer yesterday that
tee Government would consider
carefully “ the question of
claiming reparations from
Argentina after the complete
repossession of the Falkland
islands.”

Neither Mr Nott nor officials
in the Defence Ministry would

comment yesterday on current
military operations. British
troops are known to be concen-
trated in the Mount Kent area,
barely 10 miles from Port
Stanley. They are believed to
hold the hills north of Stanley,
and to be probing the Argentine
defensive “horseshoe" some
three , or four miles from the
town.

Despatches from correspon-
dents there have indicated that
the troops — probably most of
tbe 9.000 so far landed on the
islands — are ready to move once
the weather is clear enough.

However, Argentine reports
that its forces threw back a
British advance remained uncon-
firmed in London yesterday.

The Argentine military com-
mand in Buenos Aires said yes-
terday that an artillery duel
lasted eight hours bn Wednes-
day until British batteries
ceased to respond.

The Argentine communique
said the attack on Tuesday had
sunk a frigate and damaged or
destroyed Three assault ships.

Mr Nott accepted in the
Commons that four vessels had
been hit. He said on* of the
landing ship*— the Sir Tristram
Continued on Back Page

Falklands crisis. Page 6;

Parliament, Page 12;

Pound lower after British losses

BY PAUL TAYLOR

THE POUND dropped to its
lowest level against the dollar
for nearly two months in
London yesterday as the foreign
exchange markets reacted ner-
vously to reports of British
losses in tbe Falklands earlier
this week.

• Foreign exchange dealers in

£ in New York

Juno 9

Spot

Provioua

jsi.77S5.775o! 81.7785-7800

1 month | 0 .25-0.30 pm 0.26-0.31 pm
3 montruu.B6-l.03 pm. L05-U0 pm
12 month *13.45-3.60 pm! 3-5*1 3.60 pm

London reported that the
pound came under particularly
strong pressure . from U.S.
sellers. There were some signs
that the Bank of England had
been forced to intervene after
the pound sank below the $1.76
level during the day. The
pound closed 90 points down on
the previous day at $1.765ff.

The pound was also weaker
against all the major Con-
tinental currencies, failing to
DM 4.2575 from DM 4.2850 and
to FF r 11.11 from FFr 11.17.
Continued on Back Page
UK expects attack over
indexed bonds. Page 3
Money Markets. Page 40

THIS APPEARS AS A MATTER OF RECORD ONLY

HOUSTON CITY BANK

as Agent

in conjunction with

First Interstate Bank of California
Security Pacific National Bank
Banque de Paris et des Pays-Bas
and The First National Bank of Boston
has provided a

$100,000,000

revolving line of credit to

THE MELLON COMPANIES

(Mellon Enterprises, Inc. and Subsidiaries)

HM^nutyBank

3801 Main Street/Houston, Texas/Member FDIC
Member Commerce Southwest, Inc.

2

EUROPEAN NEWS

Financial; Tiin^ : Kid^‘

Hilary Barnes in Copenhagen reviews the minority Government's skilled balancing act in pursuit of its

Master of double bluff manipulates Denmark’s economic demand

ONCE AGAIN Mr Anker
Joergensen, Denmark’s Prime
Minister, demonstrated his con-
sum ate skill as a parliamentary
negotiator last week. Be made
another deal which will keep
bis minority Social Democratic
Government in office for a few
more months — and months with
Mr Joergensen can easily run
to years.

He has so far wrangled his
way to an unbroken spell of
seven years in office. Although
the administration which he
formed after last December’s
general election is his- weakest
yet, this may only serve to
sharpen the appetite of the ex-
trade union chairman for out-
manoeuvring everyone else with
a virtuoso display of bluff and
double bluff.

The current administration
can only survive if it achieves
the support both of the Left-
wing Socialist People’s Party
(SPP) and the sodal-liberal
Radical Party. By daring the
SPP to bring down a “ workers’
government " and the fence-
sitting Radicals— the super-wets
of Danish politics— to let loose
a non-socialist administration,
the Prime Minister has so far
taken every trick.

Last week’s showdown was
about economic policy. Hie Gov-
ernment put forward a three-
point plan: financial aid for
agriculture, job creation mea-
sures and a series of increases
in indirect and excise taxes (18

bills were involved in all) to
pay for these measures.

On agriculture, the farmer’s
organisations said they needed
a series of tax concessions and
better credit facilities to im-
prove their cash flow in the
next couple of years, totalling
about DKr 3.5bn (£240m) a
year, as the cost of avoiding
mass bankruptcies.

The farmers claim, however,
that the Government succeeded
in nogr/iating a net Increase in
farm aid worth only DKr^SOm
with the Radicals— who, by tra-
dition, represent the smallhold-
ers.. The increase is actually
about DKr L»n a year, but
most of it is money which had
been voted to the farmers
earlier, some of it two years
ago. First trick to Mr Joergen-
sen.

Hie long-term part of the
agricultural package is an agree-
ment to establish a state Land
Bank next year. This wifl he
able to convert mortgages for
up to DKr lObn a year in return
for first priority mortgages in
the Bank with a low nominal
interest rate, but the mortgages
will be index-linked to the value
of the land. Hie fanners’ Orga-
nisations claim this will lead to -
the gradual nationalisation of
the land.

Hie Land Bank is controver-
sial for other reasons. The
farmers’ problems arise from
the very high interest rates they
have to pay on the large invest

‘Cold-shoulder’ for PM

THE U.S. Administration is
resisting attempts by the
Danish Government to obtain
an Invitation for Prime Minis-
ter Anker Joergensen (right)
to visit Washington •'in con-
nection with Denmark's
assumption of the EEC
presidency oh July 1, accord-
ing to reports here, writes
Hilary Barnes • in Copen-
hagen.

Hie Foreign Ministry is
refusing to comment on the
report In the daily newspaper
Berlingske Tidende.

Mr Henning Christophersen,
the Liberal Party leader and
a former Foreign Minister,
says he will ask in Parlia-
ment whether a meeting has
been arranged and, if not,
wby not?

The newspaper blames the
U.S. Government’s reluctance
on highly critical remarks

merits they made In the mid-
1970s. They need relief from
the heavy burden of debt,
which threatens to bring about
half the farms worked on a fuH-
time basis to bankruptcy over a
period of three or four years. '

The index-linked mechanism
suggested for the Land Bank,

made by Mr Joergensen
earlier in the year about U.S.
policy towards El Salvador,
Turkey and Poland. He
accused Washington of apply-
ing double standards.

It is a fairly regular prac-
tice for the head of govern-
ment of the country holding
the presidency of .the Com-
munity to go to Washington
to meet the XfJS. President.
• Denmark’s trade ' gap
widened to DKr L3bh (£89m)
in April compared -with
DKr 700m (£48m) ' a year
ago. The deficit for the first
four months also * rase, to
DKr 4J5bn (£310m) from
DKr &3bn (£227m) in the
same period of 198L Imports -
so far this year have in-
creased by 14JJ per cent to
DKr 46.5bn (£2L2bu) and
exports by 1&9 ner cent to
DKr 4L9bn (£2.8bn).

however, would not only pre-
vent the farmers from making
a capital gain but alEo from
ever improving their Incomes
as the mortgage payments will
automatically rise as times get
better. As Mr Frecfe Andersen,
an economist at the Copenhagen
Agricultural University de-

scribed it “the Bank seems to
be a mechanism for making the
crisis in agriculture permanent”
The job creation scheme will
cost about DKr 3.5bn in a full
year. It involves the expansion
of training and education
opportunities and a DKr lbn
programme to -provide sub-

sidised jobs for the under-25s,
where the current unemploy-
ment rate- is abort 16 per cent
The programme also allows
local government councils to
start up production projects to
provide subsidised jobs. -

There are safeguards
designed to prevent direct com-
petkkra wife private companies.
The employers’ federation fears
that this is tire' tbfn edge of a
wedge. which, can lead to serious
distortions of the labour
market, the main effect of
whidrynll be'.to move jobs’ from
the private to the public sector.
The only important concession
the Government had to make in
these programmes, however,
whs to restrict the programme
to the under-25s. Second trick
to Mr Joergensen. -

The Finance Ministry esti-
mated the total cost o£ the
expenditure - increases and
revenue short falls involved so
the Government’s measures at
DKr 5.1bn this year and
DKr 7J.bn in 1983. The Govern-
ment’s proposed tax increases
were supposed, to bring in about
DKr S.6bn in a foil ; year.
However, the Radicals declined
to support an increase in the
tax on heating - oil- w orth
DKr 444m. and- the SPP
threatened the Governments
existence by * declaring-- its
unwillingness • to -. vote . for
virtually any of the tax
increases. : .

The SPP finally' settled for

the postponement- - of the
increases ; In the taxes voa beer
and:, tobacco until December, a
revenue kffllx of about DKr 600m
•for 1982. This Was good enough
for -the Ftiihe . Minister, how-
ever,- who thus tools tbe.-rubber.-
Whether this was whofc jtiie 1
economy wanted ra a matter 'of
bitter oonsrqvemy. Mjr Rnud
Heinesejvrthe ‘Financelfimster
and architect of a medium-ierm.
programme; formulated < in 1979-
1980, riaams.Lthat-Xbe econonty
is on the : right path- v: .‘ • :

■ Since 107S£ there have been
relatively modest . wage ■ in-.
creases-T-about 10 per cent a
year — and three; ^-devaluations

■which, ■ combined : -with the .
strength of sterling and . the
-dollar, have led 46. an effective
. trade-weighted. d^aiuati on with
the kroner, of about; 15 percent: -
together, 'these have improved
Danish competivfty. Further,
tough , restx^uats on private con- -
sumption and the' drop. in, invest-
ment have reduced fee demand
for imports* bringing the balance -
' of. grads' and services into sur-
plus for fee first lime since 1972;

The Danish G o vernment has
also achieved a huge- swftch in
demand from the private too the
public, sector. Between 1978 and -
1982," about . 75,000 - jtiw were
generated in the puHfc sector,
while 60,0Q0 privateaector jobs
have ceased to exist ■ *

Unemployment, is stiH run-
ning at about 10 per cent: .fee
c urrent balance of payments Is

heavily in deficstas a result of
riapng; intent' payments: of' a:
gaefc.fotefatt debt of DKr I17 &q
( 38.5 percentof gross, domestic
product) ;int westxates on’ long,
tetra . ..debt; ::bor«>w^ -Me
averaging -about 2L25 per cea ft."'
. and^-the jaew- threat: fe&tteok-
nodnc-. ..stabiK^^— the budget
' deficit' is now. estimated to. ifaa r
to about DRr 51 b n^lp ercejx
of GDP) in>1982TT^«lh Jaaptbs-
pect'af a redaction.

-• An essential- part ‘of - lit
Heuiesetfs ; medinzQsteiin .- pro-
gramme gradtwj' redo*’

lion inthexetigrowth of puMe-
spending .to xeip in Jl983 front
about 5.5 per scent- In 1979. But
rising . unemploymeBrt, job
creation meafotres. and'mterest
on govenuhrait'debt have made,
a V -mockery ' of-- this- yfbtagtfc
Growth in the Jiater of gwere-
ment spending .dippetf to 2L8
per cent in 1981, but is expected
to T increase by 4 -per cent in
I ^. according to fee!Kaahce
S^nistiyi : reacte»g,,DB^T?5^n. '
or kbbut 60 per -cenf-df GDP^ : >

$6 far the Government f-lms
borrowed, i^er-fean^
the /tax burden to ihcreaseibnt,
in the long run,- -as ti^e.indepen-
deot;‘ ' Economic'" " AdvSoiy
Council points oat 4? its latest
.reportj ’this . is niffitrstaiHabl&
The further pursuit'- of* fee
switch in demand wiff -fiOTe
the Government to aDtw.a eah-
stential Increase LnfeeJevrt of
real taxatioh-

■f I' ■

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BY WtLliAM DULLPOKCE, NORDIC SMTOR, IN STOCKHOtiK J .

THE SWEDISH Riksdag (Parll-
ment) has. approved sharp cuts
tn income-tax. -For 99 per cent
of Swedes in' full-time employ-
ment, the maxim um rate of tax
payable on any part of their
income will be reduced to 50
per cent by 1985. The cuts will
be effected in three annual'
rtages starting next year.j :

. ’ At present, the . so<a31ei
marginal Tate - of tax is .85 per
cent for high-salary earners.
Rates are so steeply progres-
sive that even a bine-collar
worker with an average income
pays 7586- per cent on the top
portion of his income.

■ From, this . year, . anybody
earning up . to SKr 116,800
(£11^30) ..a year.:. will pay! no.
more than 50 per cent tax. This
ceiling will be increased by 5^
per cent a year over the next
three years. .. .- ■. - --

The tax dianges r which are
highly controversial, are the
result of a compromise between
the Centre and Liberal parties,
which form the minority Gov- .',
eminent, and the Social Demo-

crat : opposition. 'The: compro-
mise caused the collapse ofJhe
majority anfi-Sodalist. cabinet
in. May; last year. Hie Gonserv^-
tives, who wanted the tax; cuts
to be effective earlier; asd%
be znore far-readuog, walked
out of the Government and
voted against the hew: tax
system this iaeek. ‘ i c :

’ The , changes -alsu IinctTtfie
deductions -of interest payment
on-loans, in particular housing
loans, :which ^taxpayers can
make .- from ' their ■ taxable
incomes. The new method . ri
deducting -interest has boa
criticised jrtriihgly .by «®o-.

. mists and tax. experts, and %
opposed S by the Horne-owneri
Association. ■ - ’ ' . . - , • v - :

... More over.. theJass of revenue
to the Treasury from the- tax
cuts is -to be compensated by
a charge on employers equiva-
' lent to 2, per cent.of their wage
bills. The Gbyertiment hopes
that the inioqine-tax oita will
induce 'the;uhibhs to curb wage
claims, so that 'the rise in
employers’ charges will : not
increase their labour costs.

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Archbishop defends Pope’s
decision to visit Poland

BY CHRISTOWBR BOWNSKI IN WARSAW

THE POLISH Primate Arch-
bishop Jozef Glemp, yesterday
defended Pope John Paul's
decisdon to visit Poland in
August and sought to reassure
both the authorities and the
Soviet Union that the trip will
pass off peacefully. "

He Implied that fee veiy fact
that the visit was goihg ahead,
when the country, is still under
martial law, showed that, fee
political situation had stabilised.
He also expressed fee hope that
it would give an impetus to the
search for a political solution:

The archbishop was speaking
to thousands of worshippers ■at -
•the traditional Corpus Chrlsti
procession Jn the centre of
Warsaw. ...

He recognised' implicitly feat
the deciatm to -come to Poland
was a controversial ’ one but
cited Britain and Argentina as
places, where “many influential
people had warned fee Pope not
to go.”

Answering those in Poland
arguing against fee trip on fee
grounds that it would sanction
fee martial -law regime, Mgr
Glemp said: “Argentina Is . a
country ruled by a junta ri
generals which has no shortage
of internment camps.

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Financial Times .Friday Jun^ 11' 19S2

EUROPEAN NEWS

SUNSHINE, SAUSAGE-SELLERS AND SIRENS AS REAGAN BECOMES BUTT OF BONN’S ANTI-MISSILE DEMONSTRATION

•• , - yj» •

t

. ' ' A ; ; -4 - ' 44

nr JAMES BUCHAN IN BONN

SOMEWHERE ON the' other
side of 'the Rhin e from Bonn,'
in the great park .' of Hvihg .
bodies / that .-was the . federal.
. capital's 'largest peace dexnbiK
‘ srtration, a man doused himself
with petrol and set ' himself
alight

Nobody seemed to know, at '
first who he was ‘or whether
he "would .survive 1 his hums in
the ambulance or, .shove all,
why he bad done ft .*••.■ , 7

.• Whatever the .answers." hiSt.
alone of the! more titan 250,000=
bodies sunning themselves ;
around him,, was. permitted -
back over the river into, the city ■
of Bonn, where .'the Nato
leaders were disputing the 1
future, course of the. alliance
and its armament in the pre-
sence of the “ great actor,"

Yet the .'young. - manes' terri-
fying action left '.little lasting

y/A^ -■ ■ '

. • ' r - it -’J

Impression on She thousands of
young. West Germans and
the professional ■ ' . ecologists,
-musicians, sausage - - ■ sellers.
Turks* .Palestinians; ' unilateral
disanheTS and beer ' drinkers
around them or, even, on the
Nato leaders In their ersatz
“government Quarter" across
the river.

.'Each went about.'- his
business, more or less uadis'
tiirbed by. the other, although
. helicopters buzzed over the
demonstrators tike' flies and a
; group of 300 masked protesters
did penetrate the government
. quarter, but were dispersed. ::
-’ Despite the organisers* pro-
-mise -that -the demonstration
was .directed predo minanc y at
Nato's plans for nuclear- anna-
merit and . not aV the person of
President Reagan, the banners
and placards suggested other-

wise.

“We . don't want you here,"
said one: another read “If you
must send . us a crazy actor, send
us Jerry Lewis”; “Weep not, if
Reagan falls . . was a third.
Yet. £n conversation, the demon-
strators were much more mild
in their views and even some-
what .'..embarrassed by the
banners.

“Reagan is just the embodi-
ment of Western armament, and
he is' here as a missionary said
a young civil servant, who had
bicycled from Osnabrueck. “I
have nothing personally against
-Reagan.” said an elderly pastor.
;whp ,;had cleverly knotted a
handkerchief to protect his head
from the hot sun. “But Reagan
was hoping with his visit to lake
= the wind out of the peace move-
ment’s sails." ,

■■ If that, truly, was the inten-

tion, if seemed to. have failed
yesterday, for in. numbers the
d emoustratjon ' even exceeded
the last major show of strength
by the peace movement in Bonn
last October. \

But perhaps it was only the
image of President Reagan, a
murderer with missiles, that
was easy enough to appeal to
■ all those present, from the
teenagers sunbathing in their
underwear to :• Herr Gerd
Bastian, the former- Bundeswehr
general who was the chief
speaker, or even.-Herr Dietrich
Stumpf, the man lying badly-
burned in a Bonn hospital.

It is hard tt> escape the
impression that the peace move-
ment as gathered yesterday,
though undeniably pacifist, is
also strongly and increasingly
nationalist in tone. “ For love of
Germany, no more missiles."

Effigies of Herr Schmidt and President Reagan are borne' aloft in Bonn by protestors demon-
strating against the U.S. leader's visit

Dutch PM
prepares
pay changes

By Walter £11 » in Amsterdam

THE INDEXING <tf 'wages to
prices, whit* -in recent years'
has brought a degree of peace:
and order to Dutch pay negotia--
tions, continues to come under
threat from the government of
Mr Dries can Agt
Although his - - minority-
administration will be in only
until the general election in'
September, he is already con-
fident enough Of success in the
polls to begin preparations far
a change of course on the key-
wages front.

. Mr van Agt believes that'
indexation has outlived its use-
fulness and that, in a period of
rising inflation (6.3 per-cent in
the Netherlands), something
must. he. done to hold down
prices and boost productivity.

. His Christian Democrat Party
. has been pressing, for months
for economic restraint, includ-
ing a .1 per cent wage cut for
the civil service, hut now Demo-
crats '66, junior partners in the
coalition, has' put forward -a
plan for .a replacement of the
index by tax cuts. ' .

The Prime Minister dearly is
attracted by the idea and .it is
possible that tentative proposals •=
will emerge for a switch be- j
tween now and fee election. ' J

Brussels argues against special
EEC arrangements for Greece

BY JOHN WYLES IN BRUSSELS

THE EUROPEAN Commission
has broadly, advised member
governments against ' " special
arrangements ** - to satisfy
Greece's t complaints that ^ the
Community’s rules and policies
. fail to meet its social and eco-
nomic needs.

In. a detailed analysis of the
Greek -demands,' tabled in
March, the Commission virtu-
ally accuses Athens of failing
to understand; the particular -
benefits'; of Community member-
ship. It suggests that Greece is
failing in .'some cases to apply
for funds, available to iL

Greek, demands, it argues,
can be. deart with either under
existing' policies or procedures
or! through proposals Whit* the
Commission bas -already put or
is putting to the Connell of *
Ministers. '

, The Commission's response
is not a- direct rebuff but it
, does reject implicitly the Greek
[ request for a derision • “ to in-
troduce differentiation " into
the- management of Community
policies and for “ new 'mechan-
isms" making special allow-
ances for the underdeveloped
nature of the Greek economy.

- Brussels officials fend to.
believe that there is already
more than, enough differentia-
tion in the management of the

France will pay the largest
share of Britain's £476m
rebate this year from the
EEC budget under European
Commission proposals to be
put to foreign ministers.
Renter reports.

A spokesman said yester-
day that the Commission had
decided on member states'
contributions to the rebate at
a meeting on Wednesday, but
he declined to give further
details.

Community. ‘.They prefer the
word “ flexibility ” and, in deal-
ing with the Greek, demands,
they also want to demonstrate
to Spain aqd Portugal that
there are limits to the possible
renegotiation of membership
terms after they join the EEC.

Athens* demands cover com-
petition rules. Community
.financial instruments a nd agri-
culture and fisheries. The Com-
mission rejects the Greek
argument that it should be able
to derogate for “ a reasonable
period ” from EEC competition
rules.. It argues that there is
already sufficient scope for
flexibility m the application of
these rules to aid projects and
that the requirement for flexi-

bility was recognised -in the
terms of the treaty of accession
with Greece.

It makes it quite dear how-
ever, that Athens cannot
employ special export aides to
help its industries but that, in
common with the Greeks, looks
favourably on investment aids
for small and medium-sized
businesses.

As far as EEC financial
policies and special help for
. Greek agriculture is concerned,
tiie Commission declares that its
plans for the regional develop-
ment fund, for the expansion of
structural aids for agriculture,
together with the Community's
■ commitment to develop Mediter-
ranean agriculture, all offer
plenty of opportunities for !
Greece to obtain more help for ;
its social and economic develop-
ment

Tile report argues pointedly;
that the recent farm price
firing went a considerable way
towards meeting the income
problems of Greek farmers.

In effect, the report chal-
lenges Greece to fight for its
interests within the Council of
Ministers and to make every
effort to ensure the adoption of
Commission proposals of parti-
cular advantage to Greece which
are still on the table.

Comecon
accords on
technology

BUDAPEST — Communist
leaders concluded a -three-day
economic summit conference
yesterday with the signing of
agreements on technical
co-operation.

The Comecon meeting ended
with no word on how the Soviet
bloc planned to approach serious
problems facing their
economies.

In his closing remarks. Herr
Willi Stoph, East Germany's
Prime Minister, praised the
Soviet Union and criticised “ the
imperialist course toward
sharpening of the international
situation.”

Mr Gyorgy ' Lazar. has
Hungarian counterpart, took a
slightly different tone. He said
the Communist nations should
not only try to work more
closely among themselves but
also 14 improve links with
countries which have different
social systems.”

The three agreements
announced publicly called for
co-operation in producing micro-
processors, industrial robots
and components for computer
systems. All three fields come
under a VS. embargo' oh sales
of advanced technology to the
Soviet bloc.

AP

UK expects attack
over indexed bonds

BY MAX WILKINSON, ECONOMICS CORRESPONDENT .

THE British Government is
likely .to come under strong
criticism at a meeting of Euro-
pean central bankers and
Treasury officials today for its
decision to sell inflation-proofed
securities to the general public.
' The criticism, at a meeting of
the EEC Monetary Committee
in Brussels, will be led by West
German officials who believe
indexed government bonds could
be a way of institutionalising
inflation. They also fear that
such bonds could provide unfair
competition to other govern-
ment's debt in the international
markets.

British officials will reply
that the amount of indexed stock
issued so far is very small, and
will -point out that- 'it has not
been particularly popular in
recent months.

Far from building inflation
into the system, they will say
the new indexed • gilt edged
stock shows the British Govern-
ment’s determination to bring
down the rate of inflation.

They will also note that the
indexed gilt does not offer an
overwhelming advantage to
foreign investors at a time
when real rates of interest
throughout the world are
| extremely high.

Currently, the three indexed

gilts offer a yield to maturity
of around 2.9 per cent. At
redemption, the bond will be
revalued in tine with inflation
over the period since its issue, i
Although this gives British in- j
vestors the certainty of beating
inflation, it will be pointed- out
Itiat foreign investors would
have to take an exchange rate
risk. Moreover, if they wanted
to sell the stock before I
maturity, there would be no i
guarantee that the market
would have revalued the price
in line with inflation. I

In spile of these arguments, |
the Bonn Government so far |
has refused to countenance the
idea of an indexed security
and remains unhappy that tile
idea should have been admitted
into Europe.

The Monetary Committee
may also discuss general
anxieties about the high level
'of recent French borrowing to
support the franc.

There was some speculation
in the foreign exchange
markets yesterday that these
general questions might be dis-
cussed by officials today. How-
ever. the French franc did not
come under much further
pressure and it remained some-
what above its ** floor " in the
EMS system.

BNOC
ventures
into Irish
waters

By Brendan Keenan in Dublin

THE BRITISH National Oil
Corporation is among 21 com-
panies to ventnre for the first
linif into Irish offshore oil
exploration, under the terms
of Ireland's second licensing
round.

In all. 24 blocks have been
allocated to 37 companies out
of the 108 blocks on .offer.
This is much " less than the
high hopes expressed when
the round was launched two
years ago. but ministers point
to a dramatic change In the
world oil market since then.

The Department of Energy
officials are taking heart from
the concentrated interest in
the Celtic Sea, off the south
coast, where eight or nine
blocks were heavily over-
subscribed. The shallow
water here could make a find
of as little" as 30m barrels
commercial.

Indeed, BNOC is the only
company to venture into deep
waters under the round, with
four blocks in the Porcupine
basin off the west coast.

Other companies include
Runnah Oil. which heads an
international consortium for
two blocks off the sooth coasL
Hamilton International Oil is
a participant in two blocks
in the same area.

Total is involved in three
blocks in the Celtic Sea,
where its partners include
Diamond Shamroek Oil (UK),
and Clyde Petroleum The
latter is also a partner with,
among others. North gate
Exploration Group and Arl-
ington Exploration in two
blocks off the Dublin coast.

...Companies with previous
experience in Ireland
include BP which is involved,
along with Gulf Oil, in. six
sonth coast blocks.

Phillips Petroleum, which
has been drilling off the west
coast, did not apply under
the round.

Irish companies such as
Atlantic Resources, Aran
Energy, Bnia Oil and Gaelic
OU are represented In the
various consortia. Conroy
Petroleum has the biggest
single lrisht interest, with a
30 per cent share in a sonth
coast block. Premier Consoli-
dated Oilfields is the other
partner.

UiS Pi?

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Without expert advice, however you could
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4

. Financial Tiines Friday June lH^2-

OVERSEAS NEWS

DAMASCUS

Genial

calm

hides

anxiety

BY PATRICK COCKBURN

EVERT SHOP In Damascus
now has a radio, and people
on their balconies can be
seen twiddling the dials to try
to encourage a weak signal
from a foreign station. Only
in the last two days have
ordinary people in Damascus
come to appreciate that the
war in Lebanon Is real, and
may well involve them.

There is another good
reason for listening to the
news. Between the dollops
■ of propaganda and Informa-
tion, the Government has
started a selective call-up of
reservists, with code numbers
for those ordered to report
read out. So far most are
specialists such as signalmen
and maintenance technicians.

Tet on the road between
Damascuc and the Lebanese
border, signs of military pre-
paration are limited, though
by no means insignificant.
Yesterday there were plenty
of tank transporters, travel-
ling in both directions and
one or two dog-in tanks could
be seen half concealed by the
abundant fruit trees.

But the atmosphere
remains relaxed. Some anti-
aircraft missiles could be
seen off the road, but their
rockets were not pointing
towards the sky. Occasional
groups of soldiers ate their
rations in the shade. Drivers
of cars and buses began to
look apprehensive only when
Syrian helicopters with
rocket pods swooped low
overhead.

Control of the road from'
Beirut to Damascus is crucial
to Syria. If it loses free
movement on this highway,
its forces will be completely
cot off. and- the Israelis will
be within easy striking
distance of Damascus. Mount
Hermon, its peals still
streaked with snow on the
east o fthe Bekaa Valley and
the brown mass of the
Lebanon mountain range
wottld not protect the capital.

The Syrians feel they must
keep control of the valley
whatever casualties they
suffer. Bat despite the
approach of war the eastern
side of the mountains is still
very peaceful, with peasants
tending fruit trees and fields.
Self-conscious soldiers in
newly-pressed uniforms look-
ing like reservists drive past
in civilian transport.

Like officials, diplomats and
journalists back in Damascus,
the war has' caught them by
surprise. A limited Israeli
assault on Lebanon in pursuit
of the Palestine Liberation
Organisation was long
expected. The near takeover
of the entire country was not
The Government "of Presi-
dent Hafez al-Assad has been
reduced to near silence as it
seeks to avoid a war which
it is bound to lose. The
President himself cultivates
an image of genial calm.
On Wednesday night he was
pictured with the U.S. envoy,
Mr Philip Habib, at whom he
beamed benignly.

Damascus is undoubtedly
an anxious city. At the best
of times it has an air of
tension, of people living on
their nerves. At the end of
last year the capital was
crowded with troops protect-
ing buildings against car
bombs planted by the Moslem
brotherhood. A single bomb
killed 175 people.

In February the Govern-
ment crashed an uprising in
Hama with the loss of
thousands of lives.

It Is hardly surprising that
tension rises by the day, as
the Syrians wait to see if they
are about to go to war again.

BEIRUT

Prevailing circumstances put
an end to the festivities

BY ANTHONY HdDERMOTT AND MORA BOUS71AMY

TEL AVIV

-BY QAYID UENNON

aumiMDowe

IT IS an indicator, albeit only a
semi-serious one, of the state of
tension in Beirut that the
British embassy felt impelled to
announce in the newspapers
yesterday that the party to
celebrate the Queen’s birthday
would have to be postponed
“because of the circumstances
prevailing, in the country."

The Beirutis are, of course,
experts. in these sorts of crises.
The constant overflying of
Israeli aircraft started very
early yesterday morning and
was greeted by hopeful barks of
fire from the ground.

People streamed on to bal-
conies to see what was happen-
ing— it provided a diversion —
for almost all shops and busi-
nesses are now shut in the
Lebanese capital.

In those that are open, buying
has not yet- reached panic pro-
portions— except for tile pur-

chase of batteries and candles
to offset the electricity cuts
which are now to rise to eight
hours per day.

People are buying staple
foods but not meat, for fear of
deep freezes not working. Bread
queues are being monitored but
yesterday tankers were still
delivering petrol to garages.
Newspapers are appearing nor-
mally.

. A mild liquidity crisis has
started. Banque du Liban, the'
central bank, was closed yester-
day, and the British Bank of
the Middle East. was restricting
•withdrawals per person to
L£5.000 (.£558).

The streets are largely empty,
whether in the fashionable
centre of town, or in the south
east towards the Palestinian
refugee camps.

Guns are everywhere, and are
being idly carried by people

who do not normally do sd.
For example' the janitor 'at a
doctor’s clinic, normally clean-
shaven and wearing a suit, now
carries a Kalashnikov, wears
jeans and two days' growth of
stubble has begun to darken bis
chin.

Reuter adds: Clouds of smoke
billowed from the airport area,
the target of Israeli forces ad-
vancing northwards on the city.
Big guns dug into the Beirut
promontory fired" shells at an
. Israeli gunboat, sending up
pillars of water around it.

Palestinians and guerillas be-
longing to Left wing factions
had slept along the seafront,
taking turns to watch for pos-
sible landing attempts by sea-
borne Israeli troops.' '

The Nasserite Murabitoun,
most powerful, of west Beirut's
Leftist militias and veterans of
the civil war, cruised along the

TOP LEFT: Israeli troops crouch behind a wall as they
search- for Palestinian guerrillas. Fierce house-to-house
fighting is continuing In occupied Lebanon

Corniche road. in small trucks
fitted with recoil-less bazookas,
heavy machine-guns and anti-
aircraft batteries.

The “ Arab Knights,” a
Syrian-backed group, rein-
forced their encampment at the
foot of Beirut’s defunct light-
house.'

Fighters of the mainly Druze
Progressive Socialists played
carts on the Corniche verge
with their truck-mounted
machine-gun parked under a
shady tree nearby. Their leader,
Druze chieftain Walid Junblatt,
fled his family seat in the Shouf
mountains for Beirut two days
ago. His order to his fighters
was: “ Fight the invaders, what-,
ever the cost” .

Armies told
to leave
Beirut area

Anthony McDermott and Nora Boustany report on the chief candidate

Lebanon in search of a new leader

The following is the text of
leaflets dropped by Israeli air-
craft over the Lebanese capital
yesterday morning: - -
T address this' appeal to you,
from one military commander
to another: The Israeli Defence
Forces have been forced to
enter Lebanon in order .to expell.
all the irregular armed factions
which disrupted security and
caused terror and destruction.

THE LEBANESE Chandler of
Deputies is scheduled to start
electing a new president to
succeed Mr Elias Sarkis in about
40 days. Constitutionally, he
must be a Christian,

Some say that the main
parties who elect the man will
not just -be the Lebanese Front,
the alliance of Christian parties,
but also Syria, and the UR.
Under the present circum-
stances, perhaps Israel should
be added to the list.

Speculation is obviously a
little premature. Mr Sarkis, for
example, could be persuaded to
stay on for a period. There is
also wild talks about Israel
wanting to make Major Sa’ad
Haddad, the leader of Christian
forces in the southern enclave,
head of whatever part of the
Lebanon Israel chooses to keep
occupied.

But in realistic terms, only
one candidate stands out — Mr
Bachir Gemayel, the 34-year-old
sou of Pierre Gemayel, the
founder of the Kataeh, the
Plbalangists.

Pierre Gemayel is a con-
firmed right-wing Lebanese
nationalist, who was impressed
by tbe discipline of German
youth under Nazism. He stood

Bechir Gemayel

twice for the Presidency in
1964 and 1970.

Bachir' has not officially
announced his candidature. But
in a speech last week in Jbeil
he outlined the characteristics
needed for the job in such a
way as to make it plain he had
only one person in mind.

Since 1976 Bachir has been
commander of the Christian
militias, which claim to be able

to mobilise some 40,000 men,
although half that figure .might
be more realistic.'- Bachir joined
the Kataeb militia at the age-
of 1L

Several factors are against his
candidacy. The first, particu-
larly given the current state of
affairs, is the Israeli connec-
tion during the crisis last year
over the Syrian siege of the
predominantly Christian town of
Zahle.

The Phalattgists received,
moral and political support ^nd
military supplies, from Israel. ,
But the Phalangists,' including
Bachir, were disappointed at the
limits of Israeli support

Since then Bachir is said to
have privately renounced Israeli
support It has remained a
source of embarrassment that
the Israelis continue to portray
themselves as the saviours of
Christian freedom in Lebanon.

As to the current crisis, while
there is private contentment at
the Israeli purging of the
. Palestinians- and the battering
of the Syrians, publicly the *
Christians oppose these devu^p-
ments.

The second factor against
Bachir goes back te the 1975-76
civil war when his Christian

forces fought for control of
Lebanon. He now has a. fair
collection of enemies among the
left Moslems and Palestinians.

Finally, there is the Syrian
dimension. Here again much
depends on what happens mili-
tarily. But Mr Karim Pakra-
douni, an important member of
the Kataeb Politbureau, has
recently been in Damascus,
suggesting that Syria’s approval
was being sought for the presi-
dential front runner.

• Whether . Bachir could be a
unifying force in the country

remains. to be seen. Yesterday

he issued a statement calling
on Lehahese Moslems *nd
Christians to draw up together
a new national charter to
exclude “all foreigners.”

There is, except among
factions of the left a lingering
desire to have Lebanon freed
from successive waves of
occupiers.

The Christian enclave north
of Beirut is regarded with some
envy as a place where, compara-
tively speaking, things do work.

As one seasoned Lebanese
observer despairingly put it
“ perhaps a mild bit of Phalan-
gist Fascism could be prefer-
able to what we have now.”

The Israeli Defence Forces
undertook the responsibility of
carrying out this task quickly
and with precision and force.
They have large forces from
the navy, army and! air force
committed to the Beirut city
area, including a huge number
of tanks. These forces, .out-'
number your forces. In a short
time, we will capture the city.

I. tell you that I do not doubt
your courage. But at the same
time, you have the responsibility
to protect your soldiers from
death and care ..for the future.

We . therefore issued orders
to our forces to permit you and
your troops to leave, tbe city
without hindrance' and to use
either of the following routes
for your withdrawal: l. Faya-
dieh-Kahala-Aley;. 2. Khaldeh-
Bshamoun-ain Anoub-sough al
Gharb-Aley. '

These routes are indicated on
the map on the following page.

I promise that our forces have
received orders to ensure your
exit from the city along the
prescribed routes in an honour-
able manner within a few hours
following your receipt of this
statement.

Gen Amir Drbi»ri_ Commander
of the northern district
AP

WASHINGTON’S: TaGEP 1 back-
ing .fqr: .the massive Israeli
invasion, of Lebanon appeared
to come to a sudden halt, at 2
am yesterday, when Mr. Samuel
Lewis, .the UB:. ambassador in
TeF ; Aviv, arrived ‘ ' at . the
Jerusalem home of "' Mr
- Menache'm Begin, the Israeli
Prime' Minister. He brought
■an Urgent message from Presi-
■' dent Ronald Reagan demanding
• that - Israel stop fighting, in"
Lebanon immediately. - .

The political haggling began,
while the Israeli forces con-
tinued- to press their .attacks on
all fronts including^ devastating
air raidg. bn . targets' In' and'
around Beirut. ‘

At 4 am, as dawn was, break-
ing' over, tbe Middle. East, two
events occurred simultaneously:
the Israeli Air Force renewed
its- bombing of Beirut, .and Mr
Begin informed his cabinet
ministers' of the UB. demand
to baft, the fighting.

’■ At - 7 am' Mr Lewis was .re-
ceived ‘ , again by the Israeli
Premier, who gave him Israel's
first reply to the . Reagan
demand. . " The contents of the
reply, have not yet- been
released, but .. the ^Israeli
armoured columns indicated
the response by pressing- .on
with the- battle around Beirut,
and In the BekaaJV'alley; in'
eastern Lebanon.

At 9 am the Israeli cabinet -
convened to discuss the Reagan-
message. During -the meeting
Mr Begin held a telephone con-
versation with Mr Alexander.
Haig, tiie -UBi Secretary of-
State, who is in Bonn. It was .
suggested that. Mr Haig might
come to Jerusalem today. e

At 10 am, while the cabinet
meeting . was in progress,'
Israeli ' aircraft' scattered,
leaflets over . ' Beirut . urging
Syrian troops to leave the city
and proposing safe exit routes.
The- leaflets informed General
Omar Halal, commander of the
Syrian brigade in* Beirut that.
Israel had earmarked for.
Beirut- large numbers of troops
from all unite, including.'
ground, air and- sea forces,
together with huge numbers of
tanks.

At 11.15 am Israel’s Arabic
service urged the Syrian troops
in the Bekaa Valley to “flee ;
for your lives.” The broadcast
beamed -at the - troops said:
“You . will soon be besieged, ■:
you have no way to escape,
pause and think, use tbe chance
to flee for ytnir lives.”

. At 12B0 pm ; the cabinet meet,
■ing ’ ende d; ^and the ; Cab inet
Secretjayt : brifffed' report as
■about thtf- ^j&iencBy tene*? of
President : Reagaa’s message. He
pantted -out .that, wtoSe caUtng
for' a haQt: to' the fighting, 'the
If.S: . leader- dM not 'demand
that'. Israeli forces be wajfc.
drawn:

•Washington : officials said
’ later, however, - that President
R e a gan had caBgd for a wtth-

' dhtwaL ; •

• Mr Shimon, peres,. leader of
the. opposition, labour Party
told reporters after g-meetioz
-' wash JMr. Begon-tiiat bavw atsu
convinced that Israel 11 'has. no
intention to -capture ffisrtit,"
.Abbot this: . time i -there .'.'were
reports of intensified IsraeE air
attacks bn Palestinian -targets
_ in Beirut . .■ and .Viof . ’ -Iscaefi
'attempts to capture Beirut air-
tiSOtft: — ■. •

: By .1 pm- Hr Lewis ww, again
dbsfeted with "Mr Begin; bring,
ing wfth.bdxn a second ^urgent
: message from - President- Re aga n
demanding a bait . to ; thp- fitt-
ing. Tbe - Israelis repkedthat
discussions on the terms for a
.ceasefire in Lebanon ^waU wSy
: start when. Mr Eaig arrives
today.

Ait 2 pm ; tite Israedtr army
spokesman in JPet..*-iAviv
announced that Israeli.- war-
planes shot down, eight .Syrian :
aircraft- and one belieppter dor- .
hag the morning. L when. -they
attacked: tbe advancing Israeli
forces. No Israeli aircraft were
lost in the dogfights, the. spokes- ,
man said, adding that -Isnieti
and Syrian forces were fighting
on-, the eastern front, m tire
Bekaa VaiUey: ' \ ’.

At 4 pm Mr Yif 2 hak Modal,
ah Israel ministerwithmjt port-
folio who had visited .the mili-
tary command headquarters in
northern Israel, tpld reporters
that no sp&cific tnne has been
-set fop a ceasefire, str es sing
that there was no- .XJB, tdfr
-mathni or pressure on- Israel to
halt tbe fighting., • . >"V

At 5.30 pm rife Israel! ahny
spokesman announced
another nine Syrian . warplanes
had been shot down in-the
afternoon. Israel also claimed
to have downed another. Syrian
assault hdacopter. ”' -■ ^

As dusk began to^faK over
the battlefields in Lebanon the
miHtery men • cphtuiited ‘io dis-
play a fir greater' sense of
urgency than those 'devoted to
finding a diplomatic solution-

!

EEC financial aid to

Israel under threat

BY JOHN WYLES IN BRUSSELS

Head of Haddadistan goes up in the world

BY STEWART DAISY IN METULLAH, ON THE 1 SR EAL- LEBANON BORDER

THE RULER and military com-
mander of what Israeli officers
call “ Haddadistan ’’ is short
and muscular, with a strong
face and narrow eyes giving
him a slightly oriental look.

Major Sa’ad Haddad used to
ride in a small array Jeep, but
has recently graduated to a
spanking new Range Rover-
style car complete with per-
sonal black-and-white pennant
on the wing.

The reason for his new
vehicle might be greater pro-
tection from the dust in this

valley. But a more likely
possibility is that the car is in
keeping with his greater stand-
ing since the Israelis invaded
Lebanon.

As this 44-year-old father of
six daughters bounces around
the streets of Metullah, hob-
nobbing with Israeli officers, he
looks conspicuously pleased
with himself.

The Israeli invasion is
“marvellous for the Lebanese,
because it will allow them to
control their own destiny," he
says.

Major Haddad thought the
Israelis should stay in Lebanon
“ until the PLO had been
defeated and all the Syrians had
been driven out of the country.”

He was perfectly willing to
fight the Syrians himself, he
said. “Yesterday, they bombed
the village of Hasbaiya, kilting
two women. I am warning the
Syrians: if they go on killing
our people I will shell Syria
myself.”

- Major Haddad is a major
beneficiary of the Israeli sweep.

Before, hfe fiefdom did not
amount to much as a buffer
zone, let alone as a viable
autonomous region. The major,
who was cashiered from the
Lebanese army in 1979. controls
a thin slither of land stretching
up to five miles north of the
Israeli border and about 37
moles long.

Whether he will Tank up witfln
Mr Bashir Gemayel, leader of
the Christian militia in Beirut to
control a " Free • Christian
Lebanon " seems a matter that
only the Israelis can deride.

THE first test of the European
Community's implied readiness
to take sanctions against Israel
following its invasion of
Lebanon could come on Monday
when a new five-year £22.4m
financial protocol is due to be
signed.

Although the Israeli mission
to Brussels expected the proto-
col to go through, some diplo-
mats and officials - thought
that a delay might he possible
for . technical ” reasons. The
protocol, which would 'be based
on European Investment Bank
loans to Israel, has been under
discussion for many months and
is not thought to be notably
generous by the Israelis. Delay-
ing its signature would not
create any precedents. !

Beirut gunman reads Israeli
leaflet

At a meeting In Bonn late on
' Wednesday. EEC Foreign Mini-'
sters accompanied an outspoken
condemnation - of the r . Israeli
invasion with a warning that .if'
Jerusalem continued to ignore .
United Nations ceasefire. . and ,
withdrawal resolutions then ’

“ the Ten will .examine the pos-
sibilities for future action.” . .

M Claude '.Oheyssoti, the
French External Affairs Mini-
ster, reportedly spoke of the
EEC not extending its coopera-
tion agreement - with. IsraeL
However, it is believed that be
was actually referring to the new
protocol which replaces one
which expired- last October.

Israel’s commercial relations
with the EEC are governed by
an agreement dating back to
1975 with which it has become
increasingly dissatisfied. * -

In particular, Israel,- Hke some
oilier Mediterranean- countries.

has been deeply disappointed
with the restrictions maintained
. on its agrjculural exports to the
Community. An intern at Com-
mission analysis of relations
with Israel concluded . recently
however that the deep
differences between, the EEC
and Israel on Middle East issues
meant that the Ten were not
trying very hard to develop or
improve .their co-operation with
Jerusalem.

Pakistan asks

for $1.35bn

aid pledge

By David Oodwdl In Paris

PAKISTAN yesterday appealed
to donor countries for aid worth
$1.35bn for the fiscal year which
begins in three weeks' time — an
increase of just 3 per cent bn
pledges made to Pakistan a
year ago. It also called for a
fresh rescheduling of debts
worth $250m.

While donor countries are
unlikely to finalise their aid
pledges until this morning, dele-
gates seemed sympathetic and
the request seems likely to be
met in full.

The World Bank and the
International Monetary Fund
(IMF) think that the Pakistan
economy is being well-managed
and that its performance is
reasonable.

GNP growth is expected to
remain at 6 per cent, while a
steady improvement in food
production has brought the
country close to self-sufficiency.
The rate of inflation is below
10 per cent, while public spend-
ing has been trimmed, with big
cuts in official subsidies.

Exports this year are likely
to fall below last year's level,
however, because of a slump in
demand for the country's two
main products, rice and cotton.

Iraq declares
unilateral

ceasefire

By Roger Ma tth e w s

IRAQ effectively declared a

unilateral ceasefire in Its 21-
month war with Iran yester-
day. The Supreme military
Command said in a com-
munique issued by the official
Iraq new agency that Iraqi
military units did not fire a
shot or carry ont any military
operations yesterday.

Iran' has rejected an Iraqi
offer of a ceasefire in the
Gnif war. A statement on the
Iranian news agency said
yesterday that the offer,
coupled with a withdrawal
within two weeks from
remaining occupied territory,
had come too late.

Iran’s- demands, for ending
tbe war include a total Iraqi
withdrawal. before a ceasefire,
the payment of ?150bn in war
reparations and the removal
of President Saddam Hussein.

Tbe - Iraqi embassy in
London yesterday denied
reports that President Saddam
Hussein may have been over-
thrown. Speculation had been
fuelled by President Saddam
Hussein's absence from the
vital meeting of the Revolu-
tion Command Connell which
made the latest offer to Iran.

Mauritius Premier faces defeat after 22 years

BY BERNARD SIMON IN PORT LOIRS, MAURITIUS

BEHIND the desk of Mauritius’s
Prime Minister Sir Seewoosagur
Ramgoolam are stacked about
half-a-dozen grey suitcases. His
aides refuse to disclose their
purpose, but there is little
doubt that they will* be needed
this weekend to remove the 82-
year old leader’s belongings
from the office he has occupied
for the past 22 -years.

Elections to be held today on
this lash sugar island in the
Indian Ocean are almost
certain to result in the replace-
ment of Sir ' Seewoosagur’s
Labour Party coalition by the
more left-wing Mouvement
Militant Mauri den (MMM) and
its junior ally, the Parti
Socialiste Mauri clen. (PSM).
Mauritius is one of. very few
Third World countries where a
multi-party democracy and a
vigorously free press still .
survive:

Barring a Labour Party upset,
the new Prime Minister will be
Mr Anerood Jugnauth, 52, a
London-trained barrister and
former Development ' Minister
in the Ramgoolam Government.

Like 52 - per cent of
Mauritius’s population, Mr
Jugnauth is a Hindu, .and owes
his position as party leader to
the MMM*s efforts to woo the
traditionally conservative Hindu

vote. The PSM is . also a Hindu-
based group, and will be
allotted five seats in the 18-
member cabinet. But the real
power behind the new govern-
ment will be Mr Paul Berenger.
the MM M’s Franco-Mauritian
Secretary-General, who is likely
to become Finance Minister.
Mr ■ Berenger’s charisma,
political savvy and youth (he
is 37) have put him streets
ahead of any other politician
on the island.

Nonetheless, the MMM coali-
tion has little chance of pick-
ing up three-quarters of the
seats in the Legislative
Assembly, which it needs to be
able to change the constitu-
tion. It wants to transform
Mauritius from A monarchy to
an Indian-style republic within
the Commonwealth, and to
scrap a clause in the constitu-
tion which requires full and
immediate compensation for
industries nationalised by the
Government.

Among the nationalised
targets are two of the Island’s
21 sugar estates (as yet unspeci-
fied), the national airline, a
hotel group and 20.000 hectares
(also unidentified) of farm,
land.

In foreign policy, the MMM
plans to abandon Sir Seewoo-

sagur's pro-Western stance in
favour of strict non-alignment.
Its priorities include closure of
the U.S._ military base in Diego
Garcia,, part of an archipelago
1.2000 miles north of Mauritius
which Sir Seewoosagur ceded
to Britain in 1965.

The MMM has promised not
to abolish the island's parlia-
mentary democracy. Mr Beren-
ger says: “ We guarantee that
elections will be held every five
years.” His criticts fear how-
ever that the same problems
which have ruined the Ram-
goolam Government’s electoral
chances may encourage.' Mr
Berenger to lose his enthusiasm
for elections as 1983 draws
closer. i.

They may also' tempt' him to
experiment with increasin^y
radical economic policies. Sir
Seewoosagur'* Ukrfy defeat in
today’s poll is party a result of
Ms 'Government’s "prudent
economic and social policies. .

Mauritius is ' a classic case of
a revolution in rising expecta-
tions. Education and' living
standard* have improved sub-
stantially in the past two
decades. Secondary ( school
enrolment has more than
trebled, as has the number of
doctors in the country. The
number of infant deaths has

been halved to about 30 per
1.000. The annual rate of
population increase on this
desperately over - populated
island has declined from 3.1 per
cent in 1963 to around 1.5 per
cent last year.

Despite the creation of 21.000
jobs in almost 100 export pro-
cessing factories in the past
decade, the economy has been
unable to provide employment
for the 10,000 youngsters leav-
ing school each year. The un-
employment rat eis close to 20
per cent. Most of the jobless
are well-educated by Third
World standards, and many
school-leavers have to take jobs
well below their capabilities. .

.While unemployment has not
yet .sparked violence, impatience
employment rate is dose to 20
among the population — 40 per
cent of whom are between 15
and r and 35 years old— at Sir
Seewoosagur's ' lengthy ■ has
grown. “A Government in power
for such a long time builds up
antagonism and resentment,”
says a Government economist

Economic problems have been
exaceitoated by a balance of
payments crisis caused by the
slump in world sugar prices and
high imports. The value of sugar
exports slumped from Rg 2.2bn
(£I14m) in 1980 to Rs 1.6bn

last year, reducing sugar’s con-
tribution to total', export
revenues from 67 per cent' to 56
percent. v-

The vis ible trade balance has
been in teh red for . the past
seven years, forcing Mauritius '
to borrow heavily from the IMF
(International Monetary Fund),
the World Bank and commer-
cial banks. Were it not for an
Increase In .quotas at the end Of

1981, .the. country would 'have
exhausted its IMF facilities.

Pressures on foreign reserves'
(and from the IMF) have forced
the Government into a stringent
austerity programme; costing it-
further electoral- support.? The
-. rupee was. devalued by 30 per
cent in 1979 and a further 20' per
cent last September.

But. the; package has suc-
. ceeded in curbing imports. The
current account deficit is
expected to be halved* via"

• SDR . fOnrin -the year to' June

1982. If present' deflationary

• policies are sustained, it will upt -
widen over the' next 12 mo nths s
and may shrink in' the event of

a firiner sugar market.

question is whether:
the MMM, assuming It is elected,
will want to continue arimipi-:.-
stering the unpleasant medicine. • .
Its. economic programme is
. ambitious — higher wages.- more
jobs, more social welfare bene?

Sir -Seewoosagur Ramgoolam
likely to lose .

fits and lower taxes are among
its -promises. A sudden spurt in
wages .wiU plunge the 'balance
of payments back into crisis.

/ Mr 'Berenger, insists that the
MUM’S answer will be to pro-
mote import replacement and
. curb foreign jmrchasesi^oveni'
meat revenues will bo^nHstavd

by cr a c ki ng down on widespread
tax ' anti customs duty 'evasion,
he says, somewhat-. jSPtimirtfr .
ally. .... ■

The- MMM’s intentions- have
contributed to sagging-. morale
in the island’s business com-
munity. Mr Muarice Patureau.
chairman 'of tho private sector's
joint economic committee, sum-
med up its .worries: “If the MMM
try- to -go i loo quickly, we’re
go ing -to fail*” .

5

-Ifc

Financial Times Friday . June 11 1982

'M

m !

lt S

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V*' 5

id to
eat

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is for pumps, plastics, pre
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6

Death toll in

conflict may

FinaTtfial frridaf ftinja i/ffi <

. THE FALKLANDS CRISIS '

======= v ... . . . . .. • * * \ * •' •• .* f

80011 Son and celebration revive nationalist spirit (

exceed 1,000

repatriated
from Britain

ST JIMMY BURNS M EUEKOS AIRES

By David. Diplomatic

Correspondent -

BY ANDREW WHITLEY

TUESDAY’S tragic events
around the eastern and
southern coasts of East Falk-
land are likely to prove tfte
worst day of losses so far for
the British forces involved in
the campaign.

Until then 135 British
servicemen were known to have
been killed, -witti the worst
single loss being 22 from HUS
Coventry. But, at least a
quarter as many again may
have to be added to the death
toll as a result odE Tuesday’s
Argentine air raids.

In Parliament yesterday Mr
John Nott, the Defence Secre-
tary, said six had died during
The destruction of a small
landing craft in Chois eul
Sound. He refused to give
numbers from the two, much
bigger landing ships lost near
Fitzroy; but defence sources
estimate that 20 of the crew
are missing, apart from the
soldiers being disgorged at the
time.

With Argentina’s human
losses believed to be roughly
four times at great — largely

due to the carnage at Goose
Green and the sailors drowned
on tiie cruiser Beigrano — the
total number of dead in the
Falklands war may well exceed
the 1.000 mark. That is over
half the number of people
living on the islands .before
Argentina's invasion.

Four Royal Navy warships —
the Sheffield, Coventry, Ardent
and Antelope — have been
either sunk or incapacitated.
Two auxiliaries, the Sir
Galahad and Sir Tristram, have
also been lost On the merchant
marine side, only the container
ship, Atlantic Conveyor, has
sunk.

destroyer HMS Glasgow and
the frigate Argonaut, are known
to be on their way back to
Britain for repairs:. HMS
Plymouth, another Light frigate,
was hit on Tuesday but not,
apparently, pul out of action.

In the air Britain has lost
eight Harrier jump-jets out of
an original total of about 40.
At least a dozen helicopters of
all types have also been lost as
a result of accidents and enemy
action.

CAPTAIN.. Alfredo Asti*
commander of the Argentine
troops captured on. South
Georgia, is shortly to be
repatriated from Britain, the
Foreign- Office .confirmed
yesterday.

P&O criticises financial
arrangements for ships

BY CHARLES BATCHELOR

LORD INCH CAPE, chairman
of the P & 0 shipping group,
yesterday criticised the govern-
ment’s financial arrangements
over the vessels requisitioned
to back up the Falklands task
force.

Two P&O cruise ships, the
Canberra and the Uganda, and
two drive-on- ferries, the cargo-
carrying Elk and the passenger-
carrying Norland, have been
pressed into Government ser-
vice. In addition a chemical
tanker, the Anco Charger, and
a cargo vessel with heavy lift
capacity, the Strathewe, have
been chartered for Falklands
use.

The company still has no idea
hi w much it will be paid,
though some provisional pay-
ments have been made. Lord
Inohcape told the shareholders’'
meeting.

Disagreement had arisen over
the value of the vessels for
which the government would

provide indemnity if they were
lost or damaged by enemy
action, Lord Inchcape said.

But an acceptable figure had
been negotiated for the Can-
berra and, hopefully, for the
Norland, though not before
P&O had been forced to take
out one month’s cover in the
market for . the two ships .and
for the Elk, at a cost of £k5m.

He defined full and fair com-
pensation as putting P&O "in
a position where we are no
better off and no worse off than
if our uhips bad not been
requisitioned.”

Lord Inchcape rejected \a
proposal from one shareholder
that the 1981 final dividend
should be reduced by Zp to 6p
and the money given to the
South Atlantic Fund. He said
P&O would make a “ substantial
contribution.’' to the fund from
this year’s profits!

Men and Matters, Page 18
-P&O results. Page. 26

However, - the Foreign
Office said, that it was not
exchanging Captain Astiz for
'the three BritiA journalists
held in southern Argentina.

It insisted that the cases
were not parallel and that
Britain <Ed- not go in for
exchanges. But it added that
if - the repatriation was
beneficial . for -the three
journalists, that would be
“well and good.” -

Following the surrender of
the South Georgia garrison in
April,' Captain Astiz was
detained for several weeks on
Ascension Island - after the
Frence and Swedish authori-
ties requested access to
question Urn about the
disappearances of their
nationals — two nuns and a
young girt— in Argentina

Under the terms of the-
Geneva Convention, he is
required as a prisoner only to .
state his service number,
name and lank. But there
have also been calls for him
to be prosecuted under Inter-
national conventions banning
torture. Captain -Astiz was
head of a notorious Interroga-
tion centre in Buenos Aires,

Captain Astiz was brought
to Britain from Ascension
Island by ship, and is being
held prisoner at the 186-year-
old Roussillon Barracks,
Chichester.

On Wednesday night there
were reports that arrange-
ments had been mad for a
helicopter from Chichester to
link ...with . a scheduled
Brazilian Airlines flight for a
“very. special passenger.”

But spokesmen for the
Metropolitan Police and the
British Airports Authority
denied knowledge of the
arrangements.

Captain Astiz was ques-
tioned in prison on Tuesday
by Det Chief Supt Reece of
the Sussex Constabulary.

Tuesday's session was
arranged by the Home Office.
The questions were provided
by the Foreign Office on
behalf of the French and
Swedish Governments.

AFTER DAYS of heavy rain and
cold nights, -the sun momen-
tarily broke through the clouds,'
bringing warmth to a city cele-
brating for the first time “Mal-
vines Day "--specially created
by the military junta to cele-
brate the acq uisiti on of the
Falkland Islands..

The population and telephone-
system, weathered -into a state
of . virtual paralys'd con-
veniently reactivated into con-
versation. “We’re licking -the
British," said one man brightly.
“The Pope's not as welcome as
he should 1 be — he went to
Britain first” said another.

On the Streets thu. flag any }

trinket vendors reflected the col-
lective schizophrenia — in one
hand they held pictures of the
“ Pastor of Peace," in the other

)

the old mottos about the “ Mai”
vinas". (Falklands) being
Argentine^ and the implicit
commitments to war.

One-lot of posters sot round
the apparent contradiction by
depicting- a' flag- sharing the
Argentine and Vatican colours
with the slogan; " The Holy
Father trill pray for our
soldiers.”

- The soldiers were having a
field -.day. Few Argentines
seemed to have any dotrbts that
the sinking of the British land-
ing ships Sir Tristram and Sir
Galahad, the “sinking” of the
frigates Plymouth and the re-
pulsion of a reported attempt
by -British troops to attack Port
Stanley early on Wednesday
morning represented the. begin-
ning of the end for the Task

Force.:.

. Seorcely 24 hours before, the
public mood was a rather dif-
ferent one, compared to the
euphoric scenes that sur-
rounded . Argentina’s invasion
on April 2. Most Argentines
had descended into a state of
untypical gloom in the amsence
of any major victory by Argen-
tine troops. -

But Argentines throughout
the crisis have demonstrated a
remarkable capacity to change
their . minds and .to delude
themselves. Submitted to a
barrage of government propa-
ganda, they have been the vic-
tims of a heavily controlled
media.

The bubbling accounts of this 1
week's blitz of the Task Force
buried and mention of the

number of- British troops -stiS." vNews 'of LArgentLnay. ’ latest
on the FalMands, the relatiy^ ?;*. victories?: - could : .-not" fiW-ff
small amount: of casualties {in -- been beted^/fimecL TSie blitz on -

military terms) suffered by 'fire * 4^ Tristram

Task Forte, and the possflalitj 1 L Js described in gory detail %
that the r invaders ” had, entire press. It may not

spite their losses, acfedaHy sue- haive gene down weflrotitiie
ceeded in doing what' they. set 1 day ;of - the^Pop e’s^-airivtd. -But

i

out to doi^-s^rround Part-Star*-.? wkft was-.wantftl
ley in preparation for a final'; yejderoayr 'i V. V ' v '

attack; - . ■

The. majority of military offi-
cials . cannot .hide their-' canBr
deoce and underiyiag sfehse of
optiarasm_> Recent devetopmen fe ;

-For. this waa tthe Day of the
Affirmatiqn qf Argentine Rights
over' ittriErT: ^z^oxiori -

. preceded/ •#».; . there-

in - their riew,C«»nfiii»' what were ' mUitaJ5:'^paxades, -speciat '
they had Suggested aU- aio&g-^ • “acts ” .-ih: schools throughout'
that General Menendaziis j&oc n-y the .coon try, a#t the gathering,
man to.give up easily— and ttrit -. yet again* at 'die masses in May.-;
the Brftish Task Force is risk- rSquare Ltd- _\ratch . . EareadeW.- ;
-ing a costly, war of attrition be- Galtieri. raise national
Cause of Argentine air softer- and -hear fl'Ibpe .trooper play
rarity.' . ■ • : •' >_ ■ the Last Ppstv^ .^7 . ; . ■; )

Galtieri aims to link

papal visit with junta

Brazil

releases

BY HUGH 0 ’SHAUGtMES 5 Y IN BUB 405 AIRES

Vulcan

Gibraltar

BY JONATHANS CWtR IN BONN.

ARGENTINA'S overwhelmingly
Catholic population is waiting
■with bated breath • for the
arrival this . morning of Pope
John Paul n and the Start of
his two-day flying visit to
Buenos Aires.

bishop’s conferences of every
country of Latin America, and
special delegations from- the
bishops of Brazil and Chile.

By Andrew Whitley

Behind the devotional activi-
ties centred on two masses,
which are expected to draw up
to millions of people^ fierce
political battle is raging about
who shall reap the rewards of
the visit.

Most Argentines will be
forcussing on the visit to the
Shrine of Our Lady of Lujan,
some 37 miles from the centre
of ; the' capital, where the Pope
will say mass this - afternoon,
before an invited congregation
of 2,500 inside the Basilica.

Lujan, the Lourdes of Argen-
tina,' is an emotive place for
Argentine Catholics for religious
reasons and for nationalistic
reasons — Our Lady of Lujan is
credited with having helped the
Argentine forces to repulse
British troops who sought to
seize Buenos Aires in the 29th
century. Our Lady of Lujan is
also Captain-General of the
Argentine armed forces.

The city’s big day is likely to
be tomorrow, when Immense
crowds will converge on the
park at Palemb, a few minutes’
drive from the city centre. .

There a big open-air altar will
be erected for the Pope to con-,
celebrate mass ' with 80 Argen-
tine bishops; the entire .ecclesi-
astical hierarchy of Uruguay, ;
the chairmen of the national .

The Junto has meanwhile
been . eager to identify the
papacy with the Argentine side.
Gen Galtieri will be waiting this
morning - at tbe steps of (he
Pope's Aerftalia airliner at
Ezeiza . International Airport
and will be at his side as the
Pope ' delivers his ‘ initial
address.

At Buenos Aires Cathedral
the Pope will be surrounded by
(he ceremonial presidential
guard, and will then have a
brief talk with the members of
the military Junta in Govern-
ment House.

BRAZIL has released a Royal
Air Force Vulcan bomber
forced down * week ago, but.
stripped of Us armaments
before letting it go on its way.

The decision by President
Joao Figueiredo is bound to
anger Argentina, which,
requested that it be held until
the end of hostilities on the
Falklands. It eould also ,
create some dissatisfaction
within the' Brazilian armed
forces. '

Tomorrow the Pope will once
more be received by the three-
members of the military Junta
at the foot of the altar steps as
he starts the great open air
mass. He will he seen off at 420 '
tomorrow afternoon at Ezeiza by '
General Galtieri and his suite.

' This close identification of the
Papal- visit with the Galtieri
regime, contrasting with his lade
of. contact with the Thatcher
Government in. Britain — has
caused consternation in church
anr .civilian circles. There is
also concern at the Pope’s
failure to find time to talk to
opponents o fthe junta and to
human rights workers.

1 ~ But there is a feeling that
new initiatives for peace in the
Falklands _conId emerge 'from
John Paul’s visit

The Vulcan with its crew of
six left Rio de Janeiro's
military airbase ^yesterday
morning for ah unknown
destination. Tt was believed to
have been running out of fuel
when it entered Brazilian
airspace last Thursday - and
was. forced 1q_ make an
emergency' landing.

. Left behind at Rio were a
missile, reported to have been
carried under a wing when
It came Into land, and .other
armaments. Local residents
believe the Vulcan dumped
its bomb load off the eoast
shortly before Its arrival -
The Brazilian Government
appears to have decided in
favour of Britain's request
that it be released |n- order
to preserve the. appearance of
even-handedness between the
two countries.

SPAIN : HAS called for support

from the Western aHiance in
a search for a quick, negotiated
settlement y«f the- -dispute .with;
Britain over Gibraltar. - :

"Sr. Lebpddb" Calvo Sotelo,
Spain’s Minister President,;
made (he call yest erday at the
Bonn summit conference of the
North Atlantic Treaty Organi-
sation (Nate).

Spain's recent adherence to '
NatO : has been 'publicly- wel-
comed by- other alliance leaders;
in Bonor-ond Mrs. Margaret'
Thatcher, Britain’s Prime .
Minister,. .' joined in the .
applause for Sri Cairo Sotelo’s -
address. - - . -

But at is recognised, that
Spain’s membership also "plates :
new strains on Nato — not leisL
over Gibraltar and the Falkland .
Islands. : . ... _. r .

The. Spanish leader ddd not
dSreotiy refer to the Falklands.'
Bat he stressed; that He- coon-
fry was drown' by itsstory and 1
culture to JairorAmeaJtau just
as it was to Europe.

The Spanish leader empha-
sised that ■ His country came „to
the affiance wtth she "wfll to -
co-operate. ' — __ .-

But ; he added: “My gown-
meet also expects the coopera- -
tion of (he attfauoe xm matters
of our national policy, such as
a rapid and negotiated settle-
ment of the Gibraltar; <Espute,
.our fun accession tathe Euro-
pean Communities, and .. . the
sttuggle against* ternxisiiL " .

Robert Gralwm adds from :
Madrid:- The jaeatla© ^betw^en
the 1 British >ajSi;^S|ranIsH
Premiers; anCTheir.

Foreign^ Ministers is' "ejected
to have' reaffizsned bbtih crotf
-tries* intentions td^jgPBrrahe^r
with ■ the ' - opening 1 1
Gibraltar - ^Erontiei' -tod. : begifl
. negotiations ;■? bn : . the ^Rocfc’s
future ‘status. ; J- ■ - v

V The *■ frontier, ; and 1 sub&I-
taneous talks, 1 "were ■ dua jLQ open
on> ApriI 20 r but the F aBrbm^j
crisis ^ ^toJUged^ ^both go«eroimffli&
to -postpone the..dsie.; ; raita
June 25. - < -.'-’ r

. Since then both govecuiriils
have publicly

willingness to gQ ahead oh tBt
new date,.bat the JPHWaiLd crisis
has continued to rt^se duoht^ -
‘ Despite . the'; extremrify ddi-
cate situation^ -however, the-twa
countries- are undtotetobd -to. see
^more. common advantage injie
frontier' opening .and' . m .- -

negotiations than w po^pohiog-
the ' : whole ; ; question ■ of :
-Gibraltar’s futuro fieri a second
time. - • • "'-i

*. Spain has been openly critical
of Britain’s '

Falklands crisis abd has backed.
Argentine territorial claims; v

Biit. the UK . could sdn ihicii
by a wlffingnessrfo discuss the
'future sovereignty of Gibraltar.

. This could be a . signal to fte
international coioi!mznity, r «am-
tive to Britirir intransigeiK^ eu
the Falklands, as weU as a tiga
tsi the . Azgemine; Govcarameat
itsell.' i

3.467,3

Deposits (Million Pesetas) 941.835.2 1.044X197,8 102^62,6 .

Real estate

Mortgages

Bonds and loans

Stocks and shares

1 or-y< z->i 1 1 L 1 1 ■>:» « 1 E 5 ! *535?

Loans on policies •

Deposits from reinsurance accepted

Bank accounts and cash

Other assets

2 662.1

1 886.4-

6 923B

878.8

833

125.9

195.0

1213

909.0

13795.7

Insurance reserves; Non-life

Insurance reserves, Life

Insurance reserves, Total

Policyholders' dividends left on deposit

39883

7649.7

1163a0

295.7

I.Tj. ; j * iivi u'Jj 1 u 1 1 il ' 1 inr.is ;■ ivl

Convertible debentures

Other ItabiTrties

Minority interests

Shareholders' Funds

6653

13795.7

The consolidated accounts encompass the assets; the liabilities;
the earnings and the outlays of the parent company and of those
companies, -of which Winterthur Insurance owns directly or in-
directly more than 50 per cent The valuation of assets and
liabilities is In keeping with the provisions laid down in the
individual countries for the published annual accounts.

The WmterthurNorwich Reinsurance Corporation and that
Norwich Winterthur Holdings, in which our company has a 45 per

cent share, andthe Itad-Winterthurara consolidated In accordance
with the equity method of accounting. The value of our shares in
the capital and in the results of these companies appears under the
headings 'Non-consol (dated participations' and "Yield from our
share in non-consolidated participations". '

The remaining participations are included in the consolidated
figures with their book value and with the dividends received.

Winterthur Swiss Insurance Company Head Office Genera/ GuisarhStrasse 40 CH-8401 Winterthur

Brandies and subsidiaries of ^ Winterthur Group In Germany, Great Britain, France, Belgium, Luxemburg; Canada, Spain, Netheriands, Italy,
Denmark, Austria, Sweden, Portugal USA ■

Loans (Million Pesetas) ............................. 591 . 577,1

Investments Portfolio (Million Pesetas) 109.984,8

Net Profit (Million Pesttas) 7.869,1

Net Profit After T«es (Million Pesetas) 5.846, 1

Dividends- per Share (Pesetas) ....................... 77,2

688.9.17,7
. 123:749,6
"10.906,7
8.012,1
. 112,0

97.340,6

13.764,8

3.037,6

Z366.0

343

. 6,10

1036

16£5

12J51

38,60

37,05

4537

Number of Branches

3-176 . 1J07 ; - ~ ' —

PRINCIPAL LONDON BRANCH
100 Cannon Street
LONDON EC4N6EH

BRANCHES IN LONDON
40 King Street ( Covent Carden)

3 Sloane Street (Knights bridge)

1 Nine Elms Lane ( New Covent Garden )
74 Commercial Street ( Spitalfields )

GENERAL MANA GEMENTINTERNA7JONAL

Paseo de la Castellano. 81.
MADRID-16 r SPAIN:

TeL 455 60 02- Telex 44458 BB-AI .?

NEW YORK BRANCH
General Motors Building. Suite 603
767 Fifth Avenue

PRINCIPAL PARISHSANCH
29, avenue de rOpera .

Branches in France 02). -tLS^A. (2), Gran Cayman (I ) '
emd representative Offices &i Milan, Frankfurt /Main, •
Mexico, Tokyo, Caracas, Rio de Janeiro and Zurich,

I£ = 184,713 ptas. (31.12,81)

Parti^patibns and ccnoperating partners of Winterthur Group: Winterthur-Norwicft Reinsurance Corporation, Winterthur CH; Norwich
Winterthur Holdings limited Norwich; ItaiS-Winterthur Seguradora, SSo Paulo; CNA Hnancial Corporation, Chicago; The CWyoda Rra &
Nlarina ireuranca Co. Ud, Tokyo; Norwich Umon Bre Insurance Society Ltd, Norwich. ■■

BANCO DF: BILBAO

7

Financial Times Friday June 11 i982

H

AMERICAN NEWS

on

Jim Rusk in Ottawa reviews the daunting economic prospect facing the Government

Depressed Canada in financial straitjacket

BY PAUL BETTS W NEW YORK

^Peedj

tlen^

THE FIRST major step in the
deregulation of the U.S. tele-
communications industry came
into effect yesterday .when the
Federal Communications Com-
mission. gave American Tele-
phone' and Telegraph, the
countzy’s leading telephone com-
pany, the go-ahead to form a
subsidiary to start marketing
for the first time special en-
hanced telephone services on an
unregulated basis.; ■

The regulatory .agency yester-
day approved AT & Ts $433. 6m
five-year capitalisation plan-for
the subsidiary. This eliminates
the final hurdlejfor the tele-
phone company, which- can now
start selling its enhanced pro-
ducts.

An AT & T official said the
commission’s action was the first
concrete step In the deregula-
tion of the country’s telecom-
munications. industry*. .

The news AT & T subsidiary
will Offer so-called advanced
communications systems which
will enable disparate computers
to communicate and store mes-
sages.

AT & T said yesterday it
hoped to begin signing op custo-
mers and offering them, the new
'services within a Couple of
months.

• Under the five-year capitalisa-
tion plan AT & T- will inject
$65ita this year into the subsi-
diary. ‘

. Further contributions will
.increase the subsidiary’s capi-
talisation to 8325.3m next year,
'to $420 -2m in 1984 and to
$433.6ra in 1985; ' ;

AT & T still has to he granted
’FCC approval to sell general
‘telecommunications equipment
'manufactured by its Western
’Electric' subsidiary on an un-
Teguiated basis:

. The FCC’s decision yesterday
is part .of tbe complex process
of. telecommunications deregu-
lation. • This has. involved an
FCC decision called computer .
2, whereby 'AT & T can enter
, unregulated markets by form-,
ing a separate subsidiary, .and
'the recent- ■ consent decree
between the U.S. Justice
Department and the telephone
company, -

The consent decree, which
ended the. Justice' Department’s
anti-trust- suit against the tele-
phone company, for the

splitting up of AT & T. The
company has to -divest itself , of
the 23 local, telephone operat-
ing.- companies before it can
enter the unregulated' data
processing, markets.

This settlement has yet to he
approved by the judge bearing
the antitrust case. The. judge
has set hearings for the end of
this month huthis final' decision
is expected to take longer.

• -The vissue has been compli-
cated - by telecomm uni cations
legislation, which is pendimg'm-
Congress, and a wide body of
public and business opinion
which is campaigning to change
-the . . consent decree - on the
grounds that it is too favour-
able to AT & T and risks caus-
ing steep increases in local tele-
phone rates..

Under, the terms of the con-
sent decree, AT & T. would
have had to set np separate sub-
si diaries, to enter unregulated
markets from which it has been
so far barred.

By approving the capitalisa-
tion of the new enhanced-
sendee subsidiary, the FCC has
enabled AT •& T to start com-
peting in this new market even
though tile consent decree has
yet to be ratified.

; Japan presses U.S.

: for export licences

BY OUR NEW YORK OORRESPONDaTT *.

JAPAN IS putting condderabie 'poration together with several
pressure 'on.- the Reagan, private Japanese companies will
'Administration to approve be in breach of their contract
export licences for ,U£. oU wife tire Soviet Unipn. c . . .
exploration equipment <for a This couJd fbrce theJaoanese

tQ ^crender their stake. in the
the Soviet Union and JapaiL at -Sakhalin project which has
Sakhalin Island off fee Siberian shown promising- signs' wife 12
coa . s 1 t - _ , ,, , - - : .-autoFlB exploratory test wells

^ ^ • indicating the presence of gas

only S2m worth crus, ^goo^ ytod oil fti possible commercial
Japan is coocensefl feat if -tt> quantities '• ■

fails to win the necessary export t

approval forfee UJS. equipment * .™ : “ su ^; is troderstood to
it could be. In brea ch of its eon- - - Bee ?\ . • the

tract with the Soviet Union. • sum-

Japan agreed seven years.^ago ; ntit- jWashiiigtop is split on
to provide all fee lechnelbgy authorise the new

-md know-how needed -ftir..the. y ?*P < ®*.“ ceDC ®*; .i.'
joint exploration veptare with— " The leading opponents of
the Soviet Union.' Tn retort^ fee' •: granting fee new licences are
Japanese • would • e^ntaaUy > concerned that .fee petroleum
receive half ' of aJI the dn and venture-between Moscow and
gas produced from ' the . field :ar Japan is part.ofa broad Soviet
preferential 'prices.' '-j- i 'Vs^itegy to make U.S. allies on
But Japan ; is -lacking in .fed;* ;bpth~. its western and eastern,
sophisticated' ' technology ' je- -borders dependent on the Soviet
quired for oil andgas explora- .Union .for future energy
tionand has had’ to -raiy on ’ -'supplies^

U.S. manufacturers • for.. fee. ..The issue has been fuelled by
equipment and technology.' the Administration’s opposition
It has - already ■ invested more . to the. Siberian gas pipeline to
Ffean $200m in the project since Western Europe. .
t 1975. But unless .fee Reagan • Others in the Administration.
f Administration- ...approves, -the . however, have warned that the
j necessary export licences before problem over licences coold
! the end of this. month; the gov- farther strain trade relations
f ernmen t-controlled energy cor- between the two countries.

V Liv

Boost for

TRurr

By Anatole Kalettky in
Washington

THE SENATE foreign rela-
tions committer has rejected
a nuclear arms freeze, pro-
posal put forward by senators’
Edward Kennedy and Mark

Hatfield.

It has adopted instead a
resolution, supporting'. Presi-
dent Reagan’s policies for
negotiating strategic weapons
reductions - with . the - Soviet.
Union. '

The committee's votes give
a significant boost to the
Reagan Administration’s
efforts to seize the initiative
on nuclear weapons policy
from the growing an tl-mi clear
movement in fee U.S.

The Administration-backed
resolution. In which fee- word.
** freeze ” was replaced by the
words “ arms reductions "
was passed by an unexpectedly
large 12-4 margin.

Senator Charles Percy, the
committee’s chairman, said
It was “ imperative to put
differences aside” and
present “ a single, consensus
resolution” in order to give
President Reagan maximum
backing in advance of fee
strategic arms reduction talks
which are doe to begin on
June 29 In Geneva.

■ The pro-Reagan resolution
■ which • the committee- passed
. also . makes it “ formal U.&
policy” to abide by limita-
tions on strategic weapons set
by fee expired Salt T treaty
and the tmratified Salt 2
agreement, providing the
Soviet Union also keeps with-
in these limits.

Dismissal of
IBM case

By Our New York Core s ponde nt

THE U.S. Justice Department
is stepping up its campaign
against a federal court judge
who- is trying to block the
department's decision to drop
its 13-year-oid anti-trust suit
against International Business
Machines.

The Justice Department said
at fee beginning of. the year
that ft was -dropping its case
against IBM because^ it claimed
it was -without merit ..

The announcement came on
fee- day. the department settled
an : anti-trust case with fee
American - . Telephone and
Telegraph Company.

Judge David Edelstein, how-
ever, has refused to drop the
case .and has .continued to
schedule hearings.-. The depart-
ment and XBM both contend
feat since the plaintiff decided
td - dismiss fee- .complaint tbe
judge, no longer has jurisdic-
tion in' fee matter.

The judge, who seemed
angered by fee sudden dis-
missal -of the -suit; is now re-
newing tbe propriety of the
department’s move.

The judge has questioned a
possible conflict of .interest on
tbe part of /Mr William Baxter,
tbe head of the department’s
antitrust division who recom-
mended dismissing the; IBM

Mr Baxter failed to disclose
to the court .feat-' when he was
a law professor at Stanford
University be had done minor
consultancy work for the com-
puter company^ Mr Baxter said
fee work was trivial

WITH THE Canadian economy
turning in its worst perfor-
mance since the- great depres-
sion, Mr Pierre Trudeau, the
Prime Minister, faces a daunt-
ing task when he returns from
his . European trip on Sunday.

- He has promised a shift in
ecbnomic policy, but there have
been few signs that fee
Government has any new ideas
about how to respond to the
crisis.

The week before the Ver-
sailles summit, the economic
news . was unremittingly bad.
Despite - a record US$750m
(£416m) Eurobond issue for
currency support, the Canadian
dollar broke through the impor-
tant psychological barrier of 80
U-S- cents, a level below which
it had never before fallen in
50 years of official exchange
rate records. ,

May unemployment figures
climbed to double digit levels
—fee first time since -the 1930s
this level had been reached.
Gross domestic product (GDP)
shrank at a rate of 6.8 per cent
in the first quarter, the sharpest
contraction since 1954. And,
despite the recession, prime
bank rate rose by 0.5 per
centage points to 17.5 per cent
as the Bank of Canada raised
rates in an attempt to shore up
the Canadian dollar.

The outlook is equally
sombre. The dollar continued
to ease earlier this week, as the
central bank reined in its sup-

port Only three trading days
after it broke fee SO-cent bar-
rier, it slipped -to 79 U-S. cents.

The ranks oCthe. unemployed,
now about 142SO,ObO, are 45 per
cent larger , than a year ago and
their numbers , are expected to
rise even further as seasonally
adjusted unemployment peaks
at around 10.5. per cent In the
third quarter. O.S points higher
than the current level.

There is only a slim chance
of a modest recovery in output
in fee second half, and feat
only ~i£ the: U.S. gets on the
recovery path so long predicted
by* the Reagan Administration.
Despite the recession, the
annual rate of inflation, as
measured by the consumer price
index, has fallen by only one
point from the 12 per cent level
at which it hovered in the first
quarter, and shows no sign of
coming down to fee single digit
level achieved in the United
States.

This harsh outlook means fee
Trudeau government has almost
played out tbe line it has taken
for fee last year, in which it
bas tried to put as much blame
as possible for Canada’s troubles
on Washington while waiting
for Washington's policies to
turn the North American,
economy around. '

Fearful feat any attempt to
lower Canadian interest rates
below those in fee UE. would
cause a run on the dollar, the
Bank of Canada has kept Cana-

dian rates slightly above those
south of the border, a stance
that has supported fee restric-
tive monetary position fee Bank
has maintained since fee late
1970s. •

While the Government backs
the Bank’s position, public sup
port for high rates at fee basic
policy to deal with domestic
inflation bas evaporated in fee
face of fee difficulties these
rates have created for farmers,
businesses and home owners. In
feesee circumstances, fee easiest
reponse for the Government has
been to pass the blame to
Washington— a strategy adopted
by tbe Prime Minister at fee
end of the summit

When the summit com-

munique did not specifically
blame Washington for high
rates, Mr Trudeau took the un-
precedented step of reading to
Canadian reporters fee language
he ' would have liked in fee
communique and some para-
graphs from his opening -state-
ment to fee leaders dn Ver-
sailles.

The paragraphs described fee
“tragically heavy price in unem-
ployment^ of efforts to fight
inflation and Mr Trudeau's
belief that “no single action
could contribute more to fee
restoration of international con-
fidence than fee decline in real
interest rates which would fol-
low a budget policy in the
United States promising

reduced deficits."

At the end of Versailles. Mr
Trudeau tried to buy a . little
more time. While he promised
to consult his Cabinet about
changes in policy when he
returns from Europe, he said
action would await fee U.S.
response to the s ummi t. He also
gave Mr Reagan until mid-July
to find an accommodation wife
Congress feat would reduce fee
deficit and bring interest rates
down.

Investor business and con-
sumer confidence has eroded
steadily s&nce last November,
when Mr Allan MecEacben,
the Finance Minister, intro-
duced bis controversial budget.
WhOe Otawa has backed down
a number of times on the bud-
get tax measures, chiefly fee
proposed attack on tax shelters,
fee retreat has done little to
restore a feeling that fee
Government bas a firm grip on
affairs.

Similarly., fee collapse of fee
$13bn Alsands oil projeet . bas
called into question Ottawa's
reliance on largenscale resource
development as fee spark to
light the economy.

Even fee recent adjustments
to fee taxation and price regime
for fee oil industry, while wel-
comed for the resulting C$2bn
(£900m) improvement in
industry cash flow, confirmed
doubts in many minds that fee
Government had not understood

what was happening dn feat
vital sector.

It is not at all dear where
Mr Trudeau can turn. Since the
summit he Nas talked of the |
need for Canadians to lower
their economic sights and of the
necessity for improved business
confidence.

But in the past his govern-
meats have shown little ability
to achieve such laudable, if :
obvious, objectives in policy.

Although Cabinet members
have been sending out signals ,
that wage restraint of some sort
will be imposed on the federal
public service, the Government
has little stomach for a full-
blown system of .wage and price
controls.

Nor does tbe Government
have fiscal room to manoeuvre. .
For three years it has been
wrestling to bring its budget
deficit under control. But wife
the recession cutting revenues
and increasing expenditures, its
estimated cash requirements for
the fiscal year that started on
April 1 are now expected to be
about double the C$6.6bn set in
last autumn's budget

This financial straitjacket.
leaves Ottawa wife little room
to find funds for job creation or
other aid programmes, although
one economic consulting firm
has estimated that a 7 per cent
ceiling on federal wage in-
creases would give Ottawa
C$1.3bn over fee next two years.

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Telephone Sunbory-on-Thames (09327)88342 for immediate information or post this
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WORLD TRADE NEWS

British exporters
to Nigeria may
forfeit payments

BY QUENTIN POL, AFRICA EDITOR.

SRITISH and other exporters
o Nigeria could forfeit pay-
ments worth several milli on
.ounds because their goods
/ere delayed in leaving their
ountry of origin.

Representations have been
oade by British diplomats in
^agos to the Nigerian Central
Sank for special exemption for
be goods which were caught by
sonfusion over the deadline set
iy the Nigerian Government
or imports to be despatched to
^agos. '

Five ships sailing from
British, ports, and a further
dx ships from ports in conti-
ie trial Europe, the U.SL, Japan
ind Hong Kong, are understood
:o have failed to make the sail-
ng deadline of May 15 for
foods with documentation
lated in the previous 12
months.

However, the shippers claim
they were assured by the
Societe Generale de Surveil-
lance (SGS), the inspection
agent of the Nigerian Govern-
ment, that a bill of loading for
May 15 would be adequate
proof. Only the day before the
deadline did SGS issue a clarifi-
cation, insisting that the ships
must have left port by then.

“We were assured that a bill
of lading dated May 15 was

sufficient proof, under normal
commercial practice,” Mr Brian
Roberts, of the confirming
house Parbury Henty, said
yesterday. “It is unreasonable
for SGS to deny us a clean
report"

Without a clean report from
SGS, exporters cannot receive
their payment from the
Nigerian importer in foreign
exchange.

Five ships which sailed from
British- ports after May 15
carried goods affected by the
ruling, according to shipping
agents. They were the Baco
Liner 2, which left Hamburg on
May 16 and Sunderland on
May 21: the Ketta Lagoon which
sailed from Tilbury on May 20;
the River Jimira, which left
Liverpool on May 17, the Happy ,
Med, which left Ipswich, on
May IS; and the Annabel] e !
which left Ipswich on May 16.

SGS officials say that the
wording of the Nigerian regula-
tions — issued as part of a
sweeping danxpdown on
imports imposed in April —
always implied that the ship
must have left port by midnight
on May 15. - Until clarification
was given, however, most
shippers assumed the inter?
nationally accepted bill of
lading would be sufficient

Italian

aerospace

exports

increase

By James Buxton in Rome

i EXPORTS BY Italy’s small but
rapidly - .growing aerospace
industry increased by two-
thirds last year to reach the
record - level- of ■ Ll,550bn
(£656m). Some 7Q*per cent
of the industry’s turnover was
exported.

Sales by the whole industry,
which employs 42,000, rose
from Ll,500bn - to L2,200bn;
a 47 per cent rise in money
terms and an increase of 23.5
per cent in real terms.

The Italian Aerospace industry,
largely in the hands of state-
owned companies, concen-
trates on small fighter air-
craft and ' helicopters ' and
manufactures parts of
civilian aircraft and U.S.
constructed engines.

Italy has a strong position in
helicopters through the
Agusta Company. AermacChi,
a private concern in which
the state owned AeritaHa
recently took a stake, makes
a light fighter which it sells
to Argentina.

inn on U.S. marine insurance

BY ANDREW FISHER, SHIPPING CORRESPONDENT IN ATHENS

LONDON insurance under-
writers have reacted sharply
to the threat of increased
competition, from the U.S.
market for Greek shipping
business.

Mr John Oliver, a Lloyd’s
underwriter said the London
market welcomed competition
“and knows it has no God-
given right to all hull insur-
ance business.”'

He added: “But it must
warn other Insurance mar-
kets— by all means, compete
but do not expect London

automatically to accept yinxr
reinsurance treaties where
London rates have been cut”

This was a reference to the
practice in insurance markets
of reinsuring major business
In order to spread the risk
beyond the original insurer.

He was responding to re-
marks made at a forum dur-
ing the Posidonla Slipping
Exhibition in . Greece this
week. Alt' AHen Schumacher,

chairman of the American
Hull Insurance syndicate,
had proposed an e xp ans i on -of

the- Ujs; marine insurance
market. .as an alternative to.
Greek links with London.

Mr Aristomenis Kara-

georgis, president of . the
Union -of . Greek Shipowners,
had also criticised the sur-
charge which operates on
insurance . of. some . Greek
vessels' a& discriminatory.

But Mr Oliver said in reply
that . there was no* surcharge
on hull insurance business in
Loudon. The market has a
surcharge for all ships older

than 15. years, wi& atfc extra"
surcharge for . some other
flags sack as Greece - and flags
of Convenience. This is on
cargoes, not hulls.:

• He added that, the London
hull market used -'the ;same
rating assessment When’ fixing
premiums for all flags. “We
find we have intense ebmiHSi-
tion for modem vessels and
large, fleets, . Not . air small'
ownpre ; have 1 unprofitable
results, and, remember, many
owners In Athens ©Is#

where staifca '20 years aga
... with one ship.”

Mr Schumacher . -

' that contrary Tto 'tfi& Xoridoh -
market, the U.S. Jmfl insurers
. placed em phasis on ubder-
“ /Writing Judgment. of a .more-,,
-.particular ’sort. ;; -■If] V:

- - fn- answer, Mr Uliver'saidi^
fWe - consider the- LawtonT
market method of n- J

newafe extremtiy flexlble^and'
with. 16 members & tjfe.jqfut*
hnH committee-, a veryrarted’
approach is - taken by tht:
market” ■":?

North Korea holds up agreement onairroute

TOKYO — NortE .Korea is - hold-
ing. .up . an... agreement . which
would permit Japanese and
Chinese airliners flying be-
tween Tokyo and Peking to
pass over North and South
Korea, according to Japanese
Government officials.

They said that Japan, China
and South Korea have basically
agreed to the proposal, put
forward by the International
Civil Aviation Organisation
(ICAO).

The proposal would cut the

current flight time by ' about
90 -minutes and the distance by
1,100- km.

Aircraft of Japan Airlines
(JAL) and the Civil Aviation
Administration of China
(CAAC) now fly between
Tokyo and Peking via Shanghai,
a distance of 3,300 km, and a
flight-time of about four hours.

The ICAO, the Montreal-
based UN agency, has called
on member nations to shorten
routes wherever possible to
save fuel.

To further this aim, the
ICAO has „ proposed routes
between the ' Chinese ' and
Japanese capitals which -would
permit Chinese airiiners'to fly
over North Korea, while
Japanese airliners would over-
fly South Korea.

Japan has agreed to the pro-,
posal and Mr Yoshio
Sakurauchi, Foreign Minister,
emphasised the necessity of
adopting the new routes in a
meeting with Mr Huang Hua,

his Chinese coumanpart/ *in
Tokyo earlier this month.

Mr Hoaqg tras quoted as say-
ing that the new routes would
save both', fttel and (sue, but
further efforts would fee needed-
on the issue. *beeause jt .in,,
volves political problems.” •.'*'•

Mr- Hflang,- accompanying
Mr Zhap Ziyang, the -Chinese
Premier, oh. ah officii visit to
Japan, did hot elaborate - bat
Japanese government.' officials
said the problems rest with the
Pyongyang government;

• The officios: said thalnforSi
Korea; -agrees.- to ^penintthie
Japanese as weS as Chinese ah-
liners t.o tise its.^ui^pare' bitt
disagrees with- .the : Idea: .06,4
route . between -Tokyo: -:&na
Poking across South Korean i*'
.At '-.--present, the. qpecffic
motive for NortovKjcara^ objec-
tion to -a route over .South
Korea is unknown,.- afthbogli it
Sa befieved to ■ be -
Pyongyang’s objecnonfaT . m
idea that there are two
Reuter. ; : ■

Confident W. Germans expect increase in exports to Arab countries

BY STEWART FLEMING IN HtANKFURT

Suzuki in Pakistan
manufacturing venture

BY OUR FOREIGN STAFF

JAPAN’S Suzuki Motors and the
state-run Pakistan Automobile
Corporation (Paco) have signed
an agreement under which
Suzuki cars • will be manufac-
tured in Pakistan.

The project will cost Rs 570m
(£31. 4m) and is geared to pro-
duce 25,000 vehicles annually,
corporation officials said this
week.

Pakistan Automobile said the
first car will leave the assembly,
line by next September and the'
project will reach a target of
80 per cent “local content” in
six years.

•In Tokyo, Suzuki said, the
full range of vehicles will even-
tually comprise cars, trades,
vans and four - wheel - drive
vehicles. _

Suzuki and Paco will set up a
joint company in Karachi in
mid-September

Suzuki, Japan’s top producer
of mind-cars of the 550 cc class,
is promoting a similar b usiness
in India.

The Indian deal calls for
Suzuki and Maruti to invest
Rs 2.5bn (£152m) in the project,
with Suzuki taking a 25 per cent
equity stake in the venture.

DESPITE declining oil produc-
tion and weak oil prices,' West
German economists are still
expecting that the Federal
Republic’s exports to oil-pro-
ducing Arab countries vm&
make an even larger contribu-
tion to the reduction of the
West German current account
deficit this year thafi.in'1981.

Last year. West German
exports to oil-producing
countries in the .Middle East in-
creased by 51 per cent Accord-
ing to the German Near and
Middle East Association; tire
country, as a result, -began to
recover its declining share of
Industrial country exports to
the' Arab countries. -

In 1977, for example, West
German exporters* share 'in
these markets was 17.3 per cent.
But it had fallen to 13.2 per
cent in 1980. Last year, how-
ever, partly because of a weak

D-mark, against the U.S. doflar,-
the currency in which most oil-
producing countries are paid,
the value of West German
exports rose rapidly and the
market share climbed to 1A2
per cent.

The surge in exports to Arab
countries came at a critical
time. In 1980 West Germany
had suffered the world’s biggest
current account deficit of
DM 30bn (£7.1bn). Of the im-
provement of DM I3bn to a
deficit of DM I2bn in 1981 fully
DM 3€bn was accounted for by
the shift into surplus in the
' Middle East-

; .The Middle Eastern countries
emerged last year as just as
t . important an export market for
West German industry as the
U.S., accounting for a 7 per cent
share (DM 28m) of total West
German exports 1 of DM 3471m.
In all probability that share

ANGLO AMERICAN CORPORATION
OF SOUTH AFRICA LIMITED

(Incorporated in the Republic 0/ South Africa)**.
NOTICE TO HOLDERS OF ORDINARY SHARE WARRANTS
TO BEARER PAYMENT OF COUPON NO. 97

With reference' to the notice of dedarstion of dividend
advertised in the press on 2nd June, 1982, the following
information is published for the guidance of holders of
share warrants to bearer.

The dividend of 75 cents per share was declared in South
African currency. South African non-resident shareholders’
tax at 10.57575 cento per share wiM be deducted from the
dividend payable in respect of all rtiare warrant coupons
leaving a net dividend of 64.42425 cents per share.

The dividend on bearer shares will- be paid . on . or. after
23rd July, 1982, against surrender of coupon No. 97 'detached
from share warrants to bearer as under; —

(a) At the offices of the following Continental paying*
. agents:

Credit du Nord. Swiss Bank Coiporation, ;

6-8 Boulevard Haussemann, 1 Aesch e nvoreladt,

75009 Paris. 4002 Baste..

Banque Bruxelles Lambert, Banque Internationa] a
24 Avenue Marnix, Luxembourg SA,

1050 Brussels. 2 Boulevard Royal,

Societe General de Banque, Luxembourg.

3 Montague du Parc, Union Bank of Switzerland,

1000 Brussels. . Bahnhofstrasse 45,

COMPANY NOTICES

Credit du Nord, Swiss Bank Corporation, ;

6-8 Boulevard Haussemann, 1 Aesch e nvoreladt,

75009 Paris. 4002 Baste,

Banque Bruxelles Lambert, Banque International a
24 Avenue Marnix, Luxembourg SA

1050 Brussels. 2 Boulevard Royal,

Societe General de Banque, Luxembourg.

3 Montague du Parc, Union Bank of Switzerland,

1000 Brussels. . Bahnhofstrasse 45,

8021 Zurich.

Payments in respect of coupons lodged at the office
of . a Continental paying agent will be made in South
African currency to an authorised dealer in exchange
in the Republic of Sonth Africa nominated by the
Continental paying agent Instructions- regarding
disposal of the proceeds of the payment so made can
only be given to such authorised dealer by the Con-
tinental paying agent concerned.

(b) At the London Bearer Reception Office of Charter
Consolidated PL-C., 40 Hoi bom Viaduct, London
EC IP 1AJ. Unless persons depositing coupons at
such office request payment in rand to an address
in the Republic of South Africa, payment will be
made in United Kingdom currency either:

(i) in respect of coupons lodged on or prior to
16th July, 1982, at the Untied Kingdom currency
equivalent of the rand currency value of their
dividend on 21st June, 1982, or,

(ii) In respect of coupons lodged after 16th July,
1982, at the prevailing rate of exchange on the
day the proceeds are, remitted, through an
authorised dealer in exchange in Johannesburg
to the London Bearer Reception Office.'

Cbupons must be left for at least four dear days for examina-
tion and may be presented any weekday (Saturday excepted)
between the hours of 10.00 am. and 3.00 pm

United Kingdom income tax will be deducted from payments
to any person in the United Kingdom in respect of coupons
deposited at the London Bearer Reception Office, unless such
coupons are accompanied by Tniand Revenue nod-residence
declaration forms. Where such deduction is made, the net
amount of the dividend will be the United Kingdom currency
equivalent of 52.50 cents per share in terms of sub paragraph (fa)
above arrived at as fallows:

South African
Currency
Gents Per Sbare

ANSELMO N.V.

1. Noth* is hereby' givon that in accoitJance with article 8 of ths Condi-
tions of .Administration, the Annual General Meeting of the holders of
depositary receipt* of ANSELMO N.V. wW be held on June .30. 1982 at

- the office of the Stichcing in Amsterdam, at Herengracht 320 at 10.30 am
in ordor to review the annual accounts of ANSELMO N.V. for the fiacal
-year ending December 31, 1881.

2. Notice that in accord enca with article 9 of tha Conditions of Administra-
tion. holders af depositary receipts or their representatives ere not
allowed admission to the meeting unless they, have deposited their
certificates at the office of the Stichting at least three days prior to the
meeting, or unless they have so deposited with the Stichting a state-
ment from a bank that ouch certificate will be hold in its custody until
the end of the meeting. -

3. Notice that the annual accounts have been deposited et the offices of
. the Stichting at. the aforementioned address, and a copy thereof will

be sent upon request to any holder of depositary receipts.

This notice Is given this day of 11th Juno 1982

STICHTING ANSELMO TRUST SERVICES

COPENHAGEN TELEPHONE COMPANY, INCORPORATED
UA 20,000,000 91% 1975/1985 BONDS

Pursuant to the provisions of the Purchase Fund, notice is hereby
given that nominal UA 568,000 have been purchased for the
Purchase Fund during the twelve-month period commencing May 28,
1981.

Amount outstanding: UA 18,594,000

June H. 1982

COPENHAGEN TELEPHONE COMPANY.

INCORPORATED

COUNT OTTO . LAMBS-
DORFF, the Bonn Economics
Minister, Is to lead a delega-
tion of West German busi-
nessmen to Iraq later this
month, writes James Buchan
in Bonn.

Hie occasion for the visit
Is the annual meeting on

win increase further this year.

According to Herr Hans-Otto
Tbfejib&ch, chairman of the
Near and Middle -East Associa-
tion and an executive at
Deutsche Bank, West German
exports -'to the region will
continue to grow rapidly this
year and ‘could show an increase
of 30 per cent to DM 354m. to.
the first quarter exports were
60 per cent higher than in the
same period last year. '

The Deutsche Bank has pre-
dicted that -for the whole Opec

LjUBLjANSKA BANKA

USStoMXXUiOO.- Floating Rote Notes
due 1986

"‘We Inform tfw bondholders That
.ViSCO bonds pL. -nominal-,. -each-.
US$1 .000.“ have been “-drawn -for-
redamptiofi in the presence of ein
:- hjuiaeier ** In Luxembourg on
27 May 1982. •

The bonds wifi be reimbursed at
par on- 21 July 1982, Coupons Nr. 9
and followings attached according
to . the modalities or payment on
ths reverse of the bonds.

Tha numbers of such drawn
bonds are as follows:

, Nra 28432 to 30000 incl.

. . Nrs : 1 to' 5931 incr.
Amount outstanding after 21 July
1982: USS22, 500,000.-.

The Principal Peying Agent
SOCIETE GENERALE ALSACIENNE
DE BANQUE
15. Avenue Emile Reuter
Luxembourg

June 21 of the West. German-
Iraqi Joint Coifcmissiim for
economic co-operation, a
number of whose . projects
have ground to a halt because
of . the drain on Iraqi financial
and bnreancratte resources
caused by the 21-month 'war
with Iran.

grot® of countries German,
exports, which, .rose 53 per cent
last year (to' DM 35bn) will
increase much more slowly in
1982,: perhaps by arOund 15 per
cent This reflects declining oil
■revenues and the. anticipated
disappearance of the. Opec
current account surplus this
year.

. This has already led to cuts
in Im ports and postponement of
development plans in some
Qpec countries. Herr Thierfoach
points out, that whereas Qpec

might; on some projections, go
into current account deficit In
1982 6f around $5hn compared
with a sQxpfas of $55bn in 2981,
the deficit wiH be concentrated
in the non-Arab countries.

! The Arab Opec nations How*
ever could be 4 b. Surplus, pos-
sffdy to the extent; of. '^35bn,
partly as a, . Tcsalt r ^"invisible
earnings on overseas portfolio
investments^ This 'wfll allow
West German exports to 1 con-
tinue to g row;

Another' factor which ,wifl
tend- to underpin the- growth, is
the fact that they are coagen-
, trated in the capital goods secs
tor where ; changes, in economic
policy will tend to work through
more slowly.: -

Wert: ^exman consumer goods
manufacturers do not have a
strong market stake. The West
German car industry, which in-
creased its exports in the region

“ sharply test- year - Is^aii .esgp.

. . lion, and it is expecting jp^see
.. the impact e£. Jfae deelSlhg rtl
■ revenues *• on 'sates /■ -’votene
emerge more quickly/- “r*

• The outbreak - of hostilities
-between the.- Israels, ^aad
PLO will be iinirolcOme to.WBt
. German? , exporters ^esp^dafiy
.when the - -Federal • iHjeptLWjtf s,
.relationships with, '
countries, - have been jofihrt ; j.
West Germany's 'pnwminsfcBs
to driver weapoqs.to
-particulaifly to Saudi Arabia/; .
i.. West German exportesrs:;K}o
are under pressure
trade: partners to help' "these
countries to- improve their'tach-
nologicai infrastructure. f 'V-
They are aware that -If :-efey
1 are to maintain market-strength,
they will need- to mamfedb^care-
:iut diplamacy ag
-tradition^ ' 'West ‘Gentian
strengths of delivering qn*ty
products on lime. r . - ■ ; -’ r

r=-"-V . • s ->v7-

ART GALLERIES

CLUBS

THACKERAY GALUERY, 18 Thackeray Sl. „„ ^ _

Keetineura Sq.. W8. 9S7 9883. SUMMER j

So Dorr from 10-3.30 am. Dltco and too
mnstclan*. glamormi* honesMS. excKIne
floors flows. 1U9. Regent SL 01-734 05S7.

Amount of dividend declared

Less: South African non-resident Share-
holders’ tax at 14.1010%

Less: UJK. income tax at 15.8990% on the
gross amount of the dividend of 75 cents

75.00000

10-57575

64.42425

1L92425

52^0000

For and on behalf of
) ANGLO AMERICAN CORPORATION
I C1 II O II Gd OF SOUTH AFRICA LIMITED

ULILjU LTI J. C. Green smith

London Office:
40 Holbein Viaduct,
EC1P 1AJ.

Note: 11th June, 1982.

The Company has been requested by the Commissioners of
Inland Revenue to state:

Under the double tax agreement between the United Kingdom
and toe Republic of South Africa, the South African non-
resident shareholders’ tax applicable to the dividend is allow-
able as a credit against the United Kingdom tax payable in
respect of the dividend. The deduction of tax at the reduced
rate of 15.899% instead of the basic rate of 30% represents
an allowance of credit at the rate of. 14*1010%,

GoHWntth Street.

LONDON EC2P 20L
from whom . debit . forme mar be
obtained.

United Klnsdpra Tax will be denuded
et the rate of 30 per cent unless
cl at ms are accompanie d by an ateoavlt.
SELECTED RISK INVESTMENTS S-A.
11th Jane. 1982.

NOTICE TO HOLDER5 Of
EUROPEAN DEPOSITARY RECEIPTS -
(EDRxl IN

NIPPON S H INPAN CO. LTD.

The 55th Ordinary General M retina of
aiijrcfiolders of Nippon Shlnpan to Ltd.
will be held on Jime Zi. 1902.

AGENDA

1. Approval of Financial Statement* and
appropriation of prodts tor the 55th
Fiscal Year (from April 1. 1981 to
March 31. 19823. , . ,

2. . Partial nmeodmentx of Articles .of

(U -5844056

are

| sj

e \

1 £ f

i a l v j

trJit

CARPHONE

LEASING PLAN

Before signing elsewhere contact
us for the very best deal .
on any make of Car-Tetephona.

Ring 0225 60318
or Telex: 444209

FINANCIAL TIMES

PUBLISHED IN LONDON & FRANKFURT

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TZI

"*

f' ’ mt ' 'NiU

S. Election of S' Directors.

4. Election of 1 Statutory Auditor.

5. Payment of retirement allowance to
the retiring Dtrectora and St* story .
Auditors.

-6. Herts Ion ot . remuneration for Directors
and Statutory.. Auditors. ..

(Full text o< Notice b avellaMe at
• Cltllianle. NA, London} - ■
Shareholders who. wish to. exercise- their
rotine nehts must dnjmsit theta- cartlflcatts
not later than June 22. 1982,. st.tiw
ollicas of the Depoeltarv, Citibank. N.A.,
336 Strand. London WC2H 1HB, or the
A eent. Citibank Ouxembourn) SA, 18
Avenue Mario Thor esc. Luxembourg,
together with loxtninlons lndKatine the
way the' shares be voted.

CITIBANK, N London.

Deporitanr-

' Secretary.

Jm 11. 1982.

EUROPEAN INVESTMENT '
BANK

7J% 1972/1987 Loan of
FF 175,000,000 .

Bondholders of the above loan are.
advised - that the' amount ' of
FF ,17.500.000 redeemable * on
August 1, 1992 was bought Into -
the 'market.

Amount outstanding; FF 105.000.000.

EUROPEAN INVESTMENT
BANK

Luxembourg
Jurat IT. 1982

Every Saturday the
Financial Times
publishes a table,
giving details of

Bonding Society
Rates
on offer
to the public

For advertising details
please ring:

01-248 8000
Ext 3606

• Lri

How many minutes from: ~ -*•, - •

ieeeeii

Newport

CLASSIFIED

ADVERjlSMENT

RATES

Commercial & Industrial
Property

Residential Property,
Appointments
Business. Investment
Opportunities
Businesses for Sale/
Wanted
Personal .

Motor Cara
Hotels ft Travel
Contracts ft Tenders
Rook Publishers

Sing!*
Par colomn

Knm - on

£ e

8.00 27.50

8.00 20.00

8.60 29 X 0

8.50 ' -29.00

3.60 29.00

6 . 00 . 20.00 .

6.00 20.00

a oo M.oo

8.00 ' ; 27.60
— n« 12. 00

Main line rail links to London and
the North? .

Container ship facilities?

A local airport? - ..

A major international airport?

The centre of London?

R6a], unspofled countryside?

Is there a choice of rtnall arid large'
plots? V •> - - ’

Is- it a Development Area?

Now write to Steve Wehrie orC^xeth Isaac foirthe fall story
Or telephone them on0633 5B906.

n ciii o rAVi-i-ii

ART GALLERIES

.pan
I Address:.

rrrrrrwwT

Premium posi tions availabte
(Mtnlmum site 30 column tunes)

.. C&00 per single column cm metric
For further detaUs write to:
Classified Advertisement

Manager' "i
- F in a n cial Timet
-.Mi -Cannon Street, EC4P 4BY

■ — — T^ephofie:-— •• -R

I • Borough of Newport; The Civic Centre i Newport j , I

- TVTnfP "4 TTD l ■ ■

Gwent; NPT4UR

WdtiffflS

iwiu.-p’JIh
■ nini.'fintli

TOlMlnWl

®pj i inMjc &nrji
E: :i1 H ►TO #ri mm

pufKMftVOim

bw. ii.li. (./('»?'!

■HIILWH’tjf,

IVWn i >c#i inittjtf
utljUiuiiitiurtlB
mii.iiiMj/jf

Chunky self-repairing bumpers arg optioni
if you don’t want them don’t buy a GLs. Jjj

4-Door GLs,

5-Door GLs.

Of course we don’t de$y you all freedom of choice load-carrying capacity is compisory). You can choose
when you buyaSaab 900 GEs. You can choosefrom . . manual orautomatictransmissici Youcan evenchoose
three, four orifiye door-modefs (although an enormous a sunshine roof.

But before we get carried away there’s one lastthing
you won’t beableto choose -a ear that
gives you more for your money

Of

- sfcifcV

rv-T**'-

sgSW

Finaxldai -Times Friday June il 1982

UK NEWS

25**0

*a-i4st,. -* | V
ev* ^ o! *»•

mi

Safely mark
of quality
planned T/

Bjr Lome Barfing

TfflB' GOVERNMENT ’ie. taking
two important steps to improve
the safety of- ; consumer pro-
dacts: It ahso intends to ensure
that unsafe -products ate taken
off the - market rapidly. Dr
Gerard- Vaughan,- the minister
for consumer affairs, said
yesterday. - . .

He said- a national mark a£
quality, was being considered, to
improve 'safety and encourage
the sale of British goods at
home and abroad, ‘ while the
working of the Consumer
Safety Act was under review.

Speaking at a Royal Society
for the Prevention, of Accidents
Conference in Birmingham, he
said there were so many
different marks, symbols, stan-
dards and warnings that people
Were, of ten confused and there-
fore ignored them. .

. “Let us s£e if we can come
.out with a hit of simple-. sense
so that people know what to
look for” he said. A consulta-
tive document on the subject
is to be published soon.

“There are too many unsafe
.goods, often, imported, which
get on to the -shelves of -our
"-shops. Too. often these goods
are sold even, when they are
known to .be. unsafe,” said Dr
Vaughan.

Watchdog on radioactive waste
criticises end of test drilling

. by iames McDonald

THE ’ Radioactive - Waste" .Man-
agement Advisory Committee —
a Government, watcbdog—fcas
expressed is ■“ regret-"" at the .
Government's . decision- last
December to discontinue geo-
logical test driving to establish
the feasibility of underground
storage, of highly radioactive
nuclear waste. ■;

The -committee's animal,
report published yesterday,'
discloses that Dr Stanley H. U.
Bowie — an independent geo-
logical consultant and Visiting
Professor of Applied Geology;
University of Strathclyde
( Geology) — resigned from the.
committee, an January “ because
of the .Gbvemmen ,, s decision. '

In its report, the committee
-^rsetiuplin 1878 to ^vg the
Secretaries ' of State for
Environment. Scotland and
.Wales independent advice, on
waste management policy— says
.the test drilling programme
would! have provided' the data
to> enable the committee to
advise eventually on" the choice
between various- options avail-
able for ; highly radioactive
wastes. The options, are stated
to be deep disposal under-
ground, disposal.* on or under
the sea bed; or ‘continued stor-
age on the surface. .

“Whale, we agree that there ,
are significant advantages to be
gained from deferring disposal

for some decades, in order to
reduce the rate of heat-genera-'
tion from these wastes, this
decision <to stop drilling) must
inevitably put off the day when
a definite derision can be taken
. about a specific and permanent
solution, for the management of
high-level wastes within the
UK.".:.; .

Specific information about tbe
detailed properties, conditions
add ambience of different rock
types in specific areas of the
UK, particularly in relation to
ground water movement can be
obtained only by a local pro-
gramme, the report stresses.
“Without it, a fully informed
decision on geological disposal
in this country- will ‘be
impossible.”

. The report says, however, that
the- committee hip been given
.an assurance from the Govern-
ment that there will he no
commitment to the construction
of a geological disposal facility
for highly radioactive (wastes,
unless and until a site has been
thoroughly assessed and ade-
quate data on the geological
environment obtained.

■ Discussing the report in Lon-
don" yesterday. Sir Denys Wil-
kinson, chairman of the commit-
tee. said he did not believe the
Government’s decision to dis-
continue test drilling was on
financial grounds.

The report ^emphasises again
the importance and urgency the
committee attaches to the deve-
lopment of disposal facilities
for Intermediate-level radio-
active wastes. .

This is mainly . because of
their ■ bulk , and the need for
additional costly and extensive
‘storage capacity if suitable dis-
posal routes are not' made avail-
able. It says there is no tech-
nical barrier to their disposal

In that contest Sir Denys
revealed that he expected an
announcement, “ possibly within
the' next two -months” the
formation of a national consor-
tium— including such interested
organisations as the UK Atomic
Energy Authority. British
Nuclear Fuels and the -Central
Electricity Generating . Board—
as an executive bpdy for the
disposal of .intermediate-level
waste. He regarded that as a
“ satisfactory and .necessary
development,”

The report notes that there
has been controversy recently
about the proposed use of boro-
silicate glass as the -medium
for storage and disposal of high-
level wastes. Tbe : committee
repeats its previous view that
it is the right process for the
UK to pursue at present

Radioactive Waste Manage-
ment Advisory Committee —
third annual report. SO. £3.50.

Recovery
in house
values

By William Cochran *. 1

TBE INCREASE In average
house prices in the first six
months of this year should
not be regarded as the herald
of a residential property
boom, according to a survey
published today.

The Incorporated Society,
of Vainers and Auctioneers
(ISVA) says that- average
- house prices increased by .a
little more than ’&6 per cent
since .the start of January
but that bad done little more
than recoup widespread falls
in values when housing
demand slumped last
autumn.

In the last 12 months, says
the ISVA, house prices had
-advanced by only 2JL per
cent. That bad largely been
achieved through would-be
vendors refusing low offers
for their properties. Asking
prices were showing little
increase in most areas.

Activity in the house
market increased significantly
in the spring but valuers are
saying that lack of public
confidence in the future is
still retarding demand. First-
time purchase remained the
most active sector. But, in
most areas, interest in haying
higher-priced properties was
recovering slowly.

Talbot drops sale of
car retail outlets

BY KHWCTH GOODING, MOTOR INDUSTRY CORRESPONDENT

TALBOT UK has given up hope
of seling off its car retailing
business, Robins and Day,
because of the depressed state
of the market and the steep
decline of the company’s market
share. /

The size of Robins and Day's
problems can be judged by
figures for 1980, when it
recorded a £3.81 m pre-tax loss
on sales of £ 93.4m.

- When Talbot, then known, as
Chrysler UK, was acquired by
the Peugeot group- of France
in 1979, it had 23 dealerships
which were operated by Robins
and Dav and accounted for 27
per-cent of the company’s car
sales.

Today there are 19 outlets, all
of them selling Peugeot’s as well
as Talbots, and accounting for
about 15 per cent of Talbot UK’s
sales of new cars. There are -
about 550 other Talbot dealers.

The latest edition of JoTdans
survey of Britain's top 500
motor distributors shows that
Robins and Day recorded a
£1.73m pre-tax loss on sales of
£9Sm in 1979 — the peak year for
car sales in Britain.

* Since then. Talbot’s market
share has- slumped from 7 to 4.6
per cent last year and. in the
first five months of 1982 was
down to 3.71 ner cent

Mr Roger Johnson, chief
executive of Robins and Day,

ha;

any would st'
ling Individ'*
the price "
buyer’s cri^ 11 '
iccable.” . ,

out that sp®. of
Day dea*®k?P s
and tba, Jn “f
of IF 4 * ^
shown v^dal
comprc"" 010 *
lod of 981 - ,

« s™y a 1 ™

Renar s OK sub"

fowrgrtE f 3

ggjgOf £294m in
r—i Jaf a profit of
saj Jof £295m the

le survey tells
ory about the
omotor distribu-
te put. of the 500
yise figures were
— , imaged a pre-tax
profit as-a. ircenat ® e of »!«•

of more l a 5 j£ r
The surf provides evidence
that Foi dealers generally
fared be' te™ rest. They
account* * or 16 out of ihb top
20 co^oies in both the
“highE profitability” and
-?• grea-t increases in turn-
over 'rfbles. whereas BL could
manr two and three

p] ac respectively.

pain’s top 500 motor distrt-
hufS. Jordans, 47 Brunswick
pji,. London N1 6EE. £55.

said the co
consider s
dealerships,
right and if
tials were
He point
the Robins
were profits
first quart
majority
improv
equivalent
The Jo
reports tha,
sfdiary re
of £lfi8m
1980, com
£320,000
previous .

Jot-dans
a depress]
profitabili
tors. Onl
com panic

collected

Scholarship
scheme
in danger

By Michael Dixon,

Education Correspondent

THE National Engineering
Scholarships Scheme, started in
1978 with the aim of attracting
cadaemically able school leavers
into industry, is in danger of
collapsing because of insufficient
support from companies.

Sir Peter Matthews, chairman
Of Vickers and president of the
Engineering Employers Federa-
tion, -said in London yesterday
that the plan to award 300
scholarships depended on a con-
tribution from industry of
£225.000 to be matched by the
Education Department.

The companies’ contribtuions
are at present about £95,000
short of the target.

About 700 were still receiving
£500 a year while at universities.
The extro money forthcoming
from companies would deter-
mine how many fresh awards
could be made this autumn.

Mr Oscar Hahn, chairman of
the scheme's action committee,
said he would not like the
number of new awards to fall
below 250. “fiut it is always
difficult to sell people a scheme,
whihe does not given them
direct results immediately,” be
added.

To have it full effect tbe
scheme would probably need to
continue for at least 10 years.

Information technology companies should enter international joint ventures, says Baker

, BRITAIN’S' information teeb-
nology companies must enter
;more joint : ventures and
collaborative arraegemenis with
!: foreign manufacturers, if they
.'are to compete' effectively on

* international - markets, ‘ Mr
‘‘Kenneth- . Baker/ Minister for

Information Technology at the
G . industry Department, said
” yesterday. ■

> He told the. Financial Times
world electronics conference in
v- London that, though there were
r many fields in which small and
-&mediuttHixzed companies could

* succeed, Britain lacked com-
j, parties which • were large
** enough, in total terms, to
' achieve ttttriomies of scale . in

manufacture for' international
" markets.

* ’ *• -

He also called on Japan to}.,
open its domestic market; more
widely to Brftish expprs. He
hoped to see furiber mwnples
of. Industrial ' ’ . .coroperation
between British and - Japanese

FINANCIAL TIMES

CONFERENCE

Report by
Guy de Jonquieres

information technology '.com-
panies.;/,'

; ■ M Jcan-Claude JHirel, director
.of / electronic and computing
indnstriesi at the French Indus-

try Ministry, called for new
forms of co-operation among -
European governments . and •
companies in a concerted effort
to reconquer European markets
and to expand internationally.

Europe possessed- many com-
mercial and technological
assets, but unless its countries
took a united stand they could
be doomed to decline. The pro-
cess would take many years to
achieve and would require a
strong commitment by govern-
ments and industry.

He proposed steps to harmon-
ise legal and regulatory condi-
tions in different European
countries, the launching of
joint research programmes and
-the Establishment of more joint
ventures ' among .European
companies to create production -
-facilities on 'a global scale.

* Mr Richard Cave, chairman
of Thorn EMI, said that the
Government had an obligation
♦o insist, wherever possible,
that, when Japanese companies

invested in Britain they -did so
on a Joint-venture basis with
UK companies.

.-Foreign investment most be
-viewed not just as a way to
create 'jobs, but also as a way to
bring about a transfer of tech-
nology and tp strengthen the
components base of British
industries. Industrial joint
ventures were not always easy,
but more and more companies
throughout the'' world were
ready to take part in them.

tor Lionel Olpier, Under
Secretary for International
Trade at the UB. Commerce
Department, said that the U.S.
and Japan shared many com-
mon ' interests in promoting
world trade, in applying
^advanced technologies and in
maintaining Western techno-
logical leadership.

But, in a speecb.read for him
by Mr Justin Bloom, scientific
counsellor at the U.S. Embassy
in London, he said that more

reciprocity was needed in trade
between the U.S. and Japan. If
unfair trading practices were
allowed to grow, the two coun-
tries’ natural confluence of
interests could turn into con-
frontation.

Mr Donald Grierson, senior
vice-president, Industrial Elec-
tronics Business Group of
General Electric, said electronic
factory automation was the
“ fountain of youth ” which
would rejuvenate the ageing
structure of U.S. manufacturing
industry and enhance its pro-
ductivity.

The market’ for industrial
automation systems was likely
to reach at least $30bn
(£16.9bn) by the end of this
decade. But few companies
today could afford to inv’est in
brand new turnkey systems.
Most needed systems which
tailored- (o .fit in with their
existing installations.

Mr. Keya Toyonaga, advise:
to the Japanese Ministry r
International Trade and Indu
■try, said that the revolution
high technology would play 1
decisive' part in revitalising e
world economy. The pre®
required close tnternations^ > '
opera tion. accompanied

market competition. 1

Japan was ready to ta!j“* w
initiatives to encourag* 1 ™-”;
national collaboration.
recently proposed th* 6 ®* 3 " -
lishment of a joint or king
gproup on high techew^y
the U.S.. and had ™ T
closer co-operation »h other
Western countries ir-romotion
of high technology. 1

Mr Rod Inger,

Boor Allen and ijulton, said
that all electron] <Jompanies
must address gl** strategic
issues, if they w® t0 succeed
in taking fu commerctal
advantage of technological
advances.. ■ 1

Mr Baker at yesterday’s conference

Roger Taylor

There's no choice about the thermostatically
heated driving seat either (unless you tear
it out of course). rrT

Evers/nce we invented wash/wipe
headlights we’ve been forcing them
on the motoring world.

You can’t choose to buy ' .
kaSaab 900 GLs without
ta power-steering.
^Sorry '

Another non-option: \ \
daytime running lights are a
compulsory on the GLs.

You can’t choose to make do without
probably the world's most advanced car
heating and ventilation system.

fcVSCTVB v i

»>. ■

10

•Faandal Times Friday • Ittne 11 1982

UK NEWS

‘should pay
back extra
profits’

Defence overspending dismays MPs

8Y BRIDGET. &OON, DBWOE CORRESPOND»IT

By Gareth Griffiths

EFFORTS should be nude by
the Department- of Bealth and
Social Security (DHSS) to claw
bade some of tbe £10m un-
intended profit made by
Britain's opticians since 1978,
tbe Commons Public Accounts
Committee (PAC) said yester-
day in a report.

The DHS5 has been told by
its lawyers, that there is no legal
basis for claiming back the un-
intended profits, and this could
be achieved only by agreement
with the opticians. The PAC

■urges the DHSS to pursue such
a 1 settiemenf through the Whit-
ley Committee dealing with
opticians' payments.

The unintended profits were
made in two ways: first, severe
competition in the lens
. industry, which • meant that
opticians- were reimbursed for
sums larger than they paid out:
and second., over-generous vat
supplements. ‘ The opticians
have agreed to- pay back the
VAT supplements worth some
£3m. ...

The . Government has
announced a review of the way'
.in. which the UK’s optical ser-
vices are run. Spectacle pricing
policy became hopelessly' eo-
tanzled in the late 1970s and the
ootiedans are being examined
also - by. the Office of Fair
Trading.

The PAC said it would be
quite unreasonable for the tax-
payer. not to be able to recover
from the opticians all the unin-
tended profits. It is also sur-
prised that it took the DHSS
two years to revise VAT
arrangements after it had been
informed that they were too
generous.

The committee makes three
recommendations:

• A constant watch needs to
he maintained to prevent reim-
bursement and pricing policy
straying out of line. Any scheme
should be clearly designed to I
fit’ current’ circumstances.

• Sample checks should be
made of costs directly rather
than identifying them at an
intermediate stage.

• Anv system for reimburse-
ment for costs should proride
for compensation in either
direction, should standard rates
depart substantially from cost.
The PAC wants greater dis-
closure of facts between the
DHSS and the opticians to estab-
lish warning signs.
GOVERNMENT departments
have been criticised for the
high fees paid to some consul-
tant quantity surveyors and
architects working on the design
and construction of National
Health Service hospitals and
othe public works, -writes
Andrew Taylor.

The PAC says the Property
Services Agency and the DHSS
“should use thetr purchasing
power more vigorously in their
negotiations with the profes-
sional associations and indi-
vidual consultants than they
appear to have done in the
past."

The report welcomed recent
moves by the Royal Institute of
British Architects and the Royal
Institute of Chartered Sur-
veyors to allow greater price
competition" between architects
and chartered surveyors when
tendering for work.

“However, we regard it as un-
satisfactory that . it . taken well
over four years to come thus
far. and we shall expect depart-
ments to lose no time in achiev-
ing effective competition among

competent and reliable firms."
it added.

PAC. 14th report. House of
Commons Paper 227. SO £4.35.

FHjE DEFENCE Ministry’s pro-
tnsity to overun its cash
nits has been severely criti-
cal by the powerful ail-Party
^Wons Public Accounts Com-

„ 3 Com mi tie*-. which yes-
* [t* published three reports

2* 1 .‘“inquiries iito aspects of
DeteiH, Mini stry spending,
noted Vgj j n tbx?e successive
years ti Mo d tad failed to
keep wi^ the cash limits
ufcposw 1 i Government.

The ma geriois overspend-
ing occuri\ i tt 1180*81. The
cash lin>it\ 0 f no.lbn was
increased U£ n g jj e year to
£ 10.41m bur i jfcD stiff over*
spent by

This was dfjbue major cuts
on service

activities, works programmes
and fuel stocks, and also
included a three-month mora-
torium on new commitments.

The PAC note a ministry
study group had subsequently
highlighted weaknesses in MoD
forecasting and monitoring pro-
cedures. “ The underlying
cause of the MoD’s problems
was Chat block adjustments
made to estimates — to allow
for uncertainties and possible
delays not related to specific
programmes — did not take
account of spare capacity which
had become available in the
defence industry because of
reductions In civil work," it
said. .

that tbe MoD's over-spending
was small in relation to its total
budget was not the point, since
the approved level was a limi t
not a target. '* Any excess
represents a failure. A single
failure does not necessarily
reflect a weakness of control,
but three failures is a row we
find very disturbing. 1 *

The PAC also studied repair,
and maintenance of the Army’s
65,000 vehicles and its policy
on pricing and post-costing of
non-competitive contracts for
defence equipment, wotfa £4bn
to £5bn a year.

cheaper. or more efficient than
the private sector.

However, it' came out in
broad support of. the MoD’s
arrangements for pricing non-
competitive contracts with
defence industries. “We would
not wish to see fundamental
changes In arrangements which
are basically sound* simply
because the defence ministry
claims a special need for signi-
ficantly higher profits,” it says.

during the

But the PAC said to argue

The PAC was critical of the
policy of maintaining vehicles
within . army establishments,
which was not necessarily

• The House of Commons
Defence Committee is to study
the way the Ministry of Defence
has handled public .and press
information about , the Folk-
lands conflict as part of its
general inquiry into the
defence aspects of the crisis.

Sheliand Esso make ‘encouraging 5 gas find

BY RAY

iY EDITOR

SHELT -tnd Esso hi m3( je an
“cncoii-asing” 6 as Uiscoveiy
with one of the mosUp^Qsjve
exploration wells sui j n t be
North Sea. The tiL™ is
thought to have cost oVfiSm.

The discovery has bi
firmed- as a result ofXpro.
duction test carried on o|iQ C k
29/5a. some 155 -miles o Q f
Aberdeen. Natural ga&, as
produced al rates uo to
cu ft a day. In addition coii-
sate — very light oil wittig
specific gravity of 45 de-
API (American Petroleum Ini
lute) — flowed al rates up
2,667 barrels a day.

ried out by the drilling rig
Sedco 709. the same vessel that
first drilled the well last year.
Drilling operations then lasted
from February 2 until Septem-
ber 13, when they were sus-
pended because of pressure
problems in the well. The gas
and liquids are contained in a
high-pressure reservoir below
14,400 fo. The rig had to be
fitted with special equipment to
undertake production testing.

but the cost of this could not
be justified by the gas reserves
of Fulmar alone.

Fulmar Field, which is mainly
an oil reservoir, was commis-
sioned in February. At present,
the gas there is being reinjected
back into the reservoir rock.

As a result of this well. Shell
and Esso have earned a joint 50
per cent stake in an offshore
licence held by Arco Oil Produc-
ing, Superior Oil (UK). Cana-

DoT under

Shell UK Exloration and ProVlian Superior Oil (UK), Norsk

duction, operator for the Shell
Esso partnership, said that fur-
ther drilling would be necessary
to evaluate the significance of
the find. But Shell added that
it was encouraged by the dis-
covery.

The production' test was car-

ydro Oil and Gas, and Minster
ts.

(The gas discovery in block
5 may help to clarify the gas
iportation plans for Shell/
's nearby Fulmar Field. It
IfWible .that a new gas pipe-
‘tow-ill be built to the UK

• Two vital offshore contracts
have been won by UK suppliers.
Highland Fabricators, a plat-
form construction yard near
Inverness, has been awarded an
order for a steel platform, worth
about Norwegian Kr 200m
<£18.3ra>. .

The bad'y-needed contract
which will help to underwrite
a substantial number of the
yard's 1.600 jobs, was placed
by Statoil, the Norwegian state
alii corporation. The platform,
due to be delivered by the end
of June 1983, will be positioned
in the Ekofisk Field as part of
the proposed Norwegian gas-
gathering pipeline system.

Aker Troendelag. Verdal in
Norway -has won a similar order
for another platform to be
placed in Norwegian block
16/11 near the S'eipner Field.
• An Anglo-French diving
group, based in Aberdeen, has
won a contract estimated to be
worth more than £35m for work
on the Norwegian gas-gathering
pipeline project. The contract,
awarded to Boulder Offshore
of London and- Comex Services
of Marseilles, is thought, to be
the largest single order placed
for North Sea diving services.

Comex Houlder Diving will
use its semi-submersible support
vessel. Uncle John, based in
Aberdeen, for the diving work
which is due .to begin in August
next year and last for about 13
months. *

The work will involve opera-
tions in the Norwegian trfench,
a deep submarine valley off tbe
coast of Norway where the water
is 300 metres deep.

BBC seeks \ontrols on cable TV growth

BY GUY DE JONQUIERfS

THE' BBC called on • the
Government yesterday to
establish a new system of
official regulation to oversee
any future expansion of cable
television.

“The BBC believes that un-
regulated cable would be
socially divisive, would sacrifice
hard-won programme standards
and would coarsen a popular
taste which has been pain-
stakingly developed by public
broadcasting,” it said.

The corporation warned ‘that
in the absence of regulation,
cable television opera tors, might
outbid the BBC and indepen-
dent television for the right to
cover sports events tike the Cup
Final and the- Olympic Games.
That would deprive many

viewerif a cress to such pro-
gramme

“ It h^aken a 60-year invest-
ment m\m and dedication to
cr ®fte tli present system of
Public ^vice broadcasting,
which is 'piversally acknow-
ledged to \ a national asset,”
it said. V

wod take a much
shorter tuna, erode the value
or that natioi asset if the new
cable service were permitted
an opera tin BhUosophy made
up of quicttj methods of
financial contrt a cynical view
of public tasted no concern
for social side-diets.”

[Die BBC gaArts views in
evidence to the B t committee,
appointed to repri t0 toe Home
Secretary by the & of Septem-

ber on the implications for
public broadcasting of an expan-
sion of cable television.

At present, cable systems serv-
ing about 2.5m UK households
are restricted to carrying only-
normal broadcast programmes.
Tbe Government is considering
whether to allow cable operators
to distribute a wider range of
entertainment programmes and,
eventually, computerised in-
formation services. •

Tbe BBC’s views conflict with
some recommendations made by
the Prime Minister’s Informa-
tion Technology Advisory Panel
(ITAP), which triggered off the
Hunt Committee's inquiry
earlier this year.

The ITAP report saw no need
for official regulation of cable.

arguing that self-policing by
operators would be sufficient It
expressed belief that the ex-
pansion of cable systems would
pose no threat to programme
quality or to the BBC’s finances.

The BBC calls for the creation
of national and local regulatory,
bodies to ensure the 'main-
tenance of programme stan-
dards, to require balance and
to prevent cable systems from
obtaining exclusive rights to
broadcast sports and other
major events.

Its views were echoed in a
separate statement yesterday by
Mrs Mazy Whitehouse’s
National VIejivers* and listeners
Association which called for a
new watchdog body to control
cable television.

Support for Lloyd’s
by Marsh and McLeikan

BY JOWI MOORE, CITY CORRESPONDENT

Bupa chief warns of too
many private hospitals

BY ERIC SHORT

attack on
roads switch

By Hazel Duffy,
Transport Correspondent

THE Department of Transport
was criticised yesterday in .a
report by the Committee . ol
Public Accounts over transfer
of work from the department's
road construction units to pri-
vaiely-owned consultants.

The committee says it is “un-
satisfactory" that the depart-
ment did not disclose the esti-
mated extra costs of the- trans-
fer. or take more trouble to
evaluate • alternative action
before an announcement in
Parliament.

"We 'consider tt an important
part of both accountability and
financial discipline for depart-
ments that significant financial-
imolications of a change in
policy of this kind should be-
assessed, and disclosed to Par-
liament before the point of
commitment is reached, so mat
Parliament can reach its own
judgment on the balance of
co«:ts and benefits.”

The committee recommends
that the department spread the
transferred work among more
consultants.

One government season for
privaH5ation of read contracting
was that tt would strengthen
private-sector . ability to' gain
overseas work. Yet the commit-
tee discovered that of IS
selected, 13 were working
already for the department or
the Scottish nr Welsh Office,

Transfer of work to private
operators was not undertaken
Initially for cost-saving the
department told the Comp-
troller and Auditor-General In
March, 1980.

MARSH and McLennan Com-
panies Inc., the largest insurance
broker In the world, raid y ester- ■
day that it strongly supported
the Lloyd’s Bill to improve the
insurance market's, self-.regula-
tion.

The surprise support came in-
London from Mr John Regan Jr,
chairman of Marsh, which has
taken over C. T. JBowring, the
UK insurance broker with large
Lloyd's interests.

He stressed that Marsh sup-
ported the controversial proposal
in the Lloyd’s Bill to require
Lloyd's brokers to sell their
shareholding links with under-
writing managing agencies, the
groups which run underwriting
syndicates.

Nearly all the main UK

brokers oppose the
Alexander -How den.
Heath, Minnet and
Holdings have pros
parliamentary petition
House of Lords to seek
of the clause. Thev

supported in their effo
Sedgwick Group. Willis
and Stewart Wrightson.

But Mr Regan said, that) C
forced sale of brokers’ sr
holdings with tmderwrl
interests had been accepted
his group as “the n
price to pay for Lloyd's getti
its legislation."

A House of Lords- comm in
is due to meet again Today <
review the Bill and hear argu-l

meats against
proposals.

the divestment

A WARNING on the dangers of
building too many private hos-
pitals has, been issued by Lord
Wigoder, chairman of the
British - United Provident
Association (BUPA), the largest
medical insurer in the UK.

In his statement accompany-
[er, j ing the annual report and
i accounts of Bupa. Lord Wigo-
i der said private developers ha'd
[ begun to plan and build hospi-
] tals on a substantial scale, based
! on exaggerated forecasts of
growth in demand for private
medicine.

This led not only to an over-
supply of beds in some areas,
but also to excessive medical
arses because of the profit

lotive.

Lord

Wigoder said these

higher changes would in turn
lead to higher subscriptions.
Some of the larger client com-
panies of Bupa, concerned at
the rise In ' costs, were .advising;
employees to use’ alternative
hospitals wnerfe standards were
still high but charges inore
reasonable.

He observed that an exagger-
ated .estimate of growth; based
on the exceptional 1 increase in
membership during 1880,- bad
attracted commercial insurers
from overseas to. exploit what
they believed was a large and
rapidly expanding market

Some companies were quoting
uneconomical premiums in
order to establish- a presence,
and would not be able to main-
tain them in the future.

Fair trade move on banks i Theatre cleaning drama

A RIFT between banks and the
legal profession could deepen
because of the latest moves by
an influential lawyers’ group.

Lawyers have been concerned
for some time over the prices
charged by banks when acting
as executors of wills.

- Now the British Legal Asso-
ciation. a professional body of
solicitors, has reported the
banks to Lhe Director-General of
Fair Trading. ! ■ »

The association believes that
bank trustee department charge
too much in comparison with
solicitors’ fees for similar work.

Banks are allowed to advertise

for such business while solicitors
are not. The association believes
the banks have acted unfairly
and hopes the Director General
will 'put pressure 'on banks to

cut their costs, or take them to !
court over their charges. •

Mr Stanley Best chairman of •
the association, said this latest :
move was not meant to persuade i
people to ask solicitors to act a? \
thei reseculars. A family friend ‘
or relative could sometimes do i
the work. . 1

Hie Law Society, the solid- j
tors’ largest professional ;
organisation, takes tbe same :
view as- the association. <

A Taw society official said:
people were sometimes unaware
of the level of banks' charges.

Mr Chris Mapleton. of the ■
banking information services, ;
said banks charged according to I
specific tariffs which were
made known to those who
appoint banks as their execu-
tors. • • *

USA WOOD

A ^DECISION -. on whether
Lhfen’s National Theatre will
go Acad with plans . to assist
its Jtaning to a private con-
tracn will be made in the neaet
few Veto. -

Ea jjr this week, the ruling
Laboagroup on tbe Greater
Lon do Council threatened that
it woulVtop its £690,000 a year
grant tithe theatre unless it
abandon^ such plans.

The Gt‘ s next instalment r*f
£172.51)0 \ due In early July,
and Mr lhy Banks, chairman
of the Gliarts and recreation
Committed has said that the
money wilhot be paid il lhe
National edraets the work to
Exclusive daning Services.

Such a thfet was last made
by tho GLCV 19S0 when Sir

Horace Cutler, the Conservative
leader, said he would withdraw
the grant if tbe play, Romans
in Britain, was not taken off.

Thciheatre adopted the latest
plan in response to as impend-
ing deficit of £140,000. Last
year, the theatre made a small
surplus on total costs of £l0.38ni.
The desire to maintain artistic
standards, said the NT, forced
it to conclude that scope for
savings was confined to cutting
costs bn upkeep of the building,
which accounts for about 16.2,
per cent of -total spending.
Actors’ salaries, by comparison. 1
lake some 15.9 per cent of costs.

The theatre estimated it could
save up to £60,000 on. its clean-
ing bill of £174.000 by assigning
the work to contractors.

reduces

operations
in U.S.

SOTHEBY'S ts closing its
saleroom on Madison Avenue.
New Yorii, and will bold
auctions in Its purpose-built
York Avenue Galleries. It is
also selling its Los Angeles
operation and will dispose, of
works from the, UJ5- West
Coast in New York.

This is part erf Sotheby's
cost-cutting efforts to get the
company ' back into profit.
Weakness in many sectors of
the art market, coupled with
the high investment costs of
recent years, has eaten into
profits. ■ In . the .last nine
mouths, Sotheby’s has been
shedding staff worldwide.

It Is unlikely that; the UK
operation, which is ma king a
loss, will escape- more redun-
dancies. Sotheby’s' Belgravia
saleroom is being closed and
one of the three provincial
salerooms might be axed.
Mr Julian Thompson, who
took over this month as chief
executive of Sotheby’s
British and European opera-
tions, said the market for the
finest works of art is /dill
strong but medium-priced
objects, usually bought by
dealers, are less In demand.

Credit card Co t

LLOYDS BANK fell into line
yesterday with- the Midland
Bank and Barclay card by
announcing; a reduction from
July 1 In the monthly interest
charges on Its,. Access credit
cards of £ per cent to 2 per
cent. This cat in the annual
percentage rate on Lloyds
Access cards from 30.6 to 263
percent patches the redac-
tion for Midland’s Access
customers 1 and the 6JLm
Barclay card customers an-
nounced this: week after the
redaction in banks’ base
lending rates.

Loan for Scotland

THE European Investment
Bank (EIB), Che European
Community’s bank for long-
term finance, has loaned the
equivalent of £2.5m towards
various, in fr a stru c tu ral Im-
provements to serve develop-
ments in indnstryand tourism
in the Dumfries and Galloway
region of south-west Scotland.
The loan*, for 15 years, goes
to the Dumfries and Galloway
Regional Council for various
road improvements and water
* supply schemes which will
-facilitate 12 industrial -site
-and advance factory develop-
ments to erfetie- about 1,650
Jobs.

Steel output up

Steel production ur Britain
averaged 317,700. tonnes a
'week' In' May— 3' per' cent
higher than in April and 10.6.
per cent more than May, 1981 :
— according, to :the British 1
. Steel Corporation and the
British - Independent Steel
Producers’ Association. Out- .
put in. the .first five months
’■of the yeu' averaged. 31630
tonnes , per wed*. 9.4 per cent
above the rate tn the eqitiva- .
lent period of 198L -
- However, in. both- April and
.May, . 1982, production was
affected by less xbmiand. than
in earlier mouths, particu-
larly for, commercial steel
products for re-rolling.

Prestige job lost

PRESTIGE, 'the kitchen
equipment manufacturers at
Derby, has declared 68 of its
280 production workers redun-
dant, 'from _ today. The -com-
pany blamed “the continued
depressed state of business.* 1

GLC industry heiad

MR ALAN McGARTOY; an
official of the former National
Enterprise Board, has . been
appointed chief executive of
-the Greater London ConnclTs .
Greater London- Enterprise
Board. The board wUllopera-
ate on a budget of some £29m
,ln its first year, cwqsitferably
less than the £4Gm ' plmnt&f
by the GLC for investment .in.
London industry. ;

War rooms - tender

Northern employers attacl Stansted plans

by nick .Garnett, northern correspondent

THE PROPERTY Services
Agency has Invited tenders-
for . the preparation, of .the : -
Cabioet war rooms, , to be
opened for display to the geh^
era! pubtie.- The work is ex-
pected to be complete by
autumn, 1883, The basement
war rooms, beneath the Gov-
ernment Offices to ' Great
George Street, Loudon, were .
used by Mr Winston Churchill
during World War n - for
Cabinet meetings with the
Chiefs of Staff. The rooms,
have been left as they were .
In 1945 and. have been avail-
able in recent year* only for
limited guided tours on appli-
cation. The tours will cease on
Jqhe 30 to let -werk begto

Minister outlines £2m
technical service for

small manufacturers

BYTWi DICKSON

A, -FREE service to help small
manufacturing companies wicn
their technical problems was
announced yesterday ■ by the
Department of Industry.

Government resources ol
fft-am have been made avail-
able to- pay. for the advice,
wbk* will be given through the
Production-'. Engineering
Research Association (Pera) at
Melton Mowbray.

Pera' already operates th*
department's Manufacturing
Advisory Service (MAS) ..which
also -deals with technical diffi-
culties, but only far companies
with more than 60 employees.

Announcing the Small Finns
Technical . Enquiry Service
(SFTES) yesterday, Mr John
MacGregor, Industry Minister
with "special , responsibility .for
small business, said the scheme
would fill “ a long-standing
gap-"

If will be available to any
manufacturer In England, Scot-
land and ' Wales, provided it
does not employ more than 200
people on .the site concerned
and provided, it has not already
benefited from MAS.

To spread the', benefits as
widely as possible, companies
win only be allowed up to four

technical ““JSSSays ^ ^f^work

5"^ J£is ^UhetoSt (exclud-
by advisers, « “ cl)

ing time spent in tra \ C ” „

conipi s dis-

3r5"Ss? - fc "

about materials or
SSSTSethods of manufacture.

SSTwring insnruao ms _

energy savings.

General management or finan-
cial emblems will continue to
; be. tackled by the Small Firms
Service (Freefone 2444).

Some SFTES inqunres will
be handled directly hy P®”.
hut the others will be farmed
: out to other research organisa-
tions and private consultants.

SFTES may be contacted by
telephoning Pera at Meton
Mowbray (0644) 64133, ext 444.

OFT urges compulsory
descriptions of used cars

BY KB4NOT4 GOODWG, MOTOR INDUSTRY CORRESPONDENT

THE OFFICE of .Fair Trading
has revived the idea that all
use car dealers shduld be forced
by law to display a signed state- .
medt about a vehicle's condition
on the windscreen.

The statement would -say if
there were mechanical or Bafety
defects, whether the milometer’s
reading was correct, and would
apply to cars r up to 10 years
old.

The suggestion was first made
in a Teport in November 198Q
but did not fin favour -with Mrs
Sally Oppehheim, previous Con-
sumer Affairs Minister.

Mr Gordon Borne, director-
general of the OFT, said yester-
day that Dr Gerard Vaughan,
the new minister, had shown
more interest In the idea.

Mr Bo rile recently visited the
U.S. state of Wisconsin, where .a

Government to retain five
Ulster training boards

BY OUR BELFAST CORRISrOt&CNT .

the GOVERNMENT, yesterday, keep;v tainJM i needs under
proposed ' toe retention' of at review and -develop hnks with
least five of Northern Ireland’s the:ptthtita«®w. It would also
nine industrial, braining boards advise on mad ■■promote lnnova-
and put, forward;- plans for-' a don particularly of technological
. training ' authority, with broad skms.

responsibilities. "• ' • consultative d o cu ment

..■ a , "..''sadd conclusive -arguments had

. .The present Northern Ireland.- been put forward' for- retaining
Training - Executive,':- which ; th£ boards^ whk* ^cover eater-
carries out .central ~ admihistra-' - ing - constrpritoh, • engineering
tree and financial duties, for the" ■ W( j road transport ;
boards,, is to^ 'be .-given" additional 'ThqV department also favours

powers. and will he renamed the~ mfafnihg tfee textile 'industry
Northern Ireland .. Tratoimg' ^ felt adequate

Authority. The proposal* were* tiaintog-i»nW irat.be- provided
put forward*, jm a ' consultative- -voluntarily by : anv - industry

nftHltafaMl- " hv ' YhT*l’ nri'nii.Ifl, if*~ It

lengthy review. , ..... . . ...

- M^ 'Adajn-®utier,'Mtoister :'af
State -to Northern Xretojod,. said
he: wanted toe new authority, to
provide strong leadership for all
facets of industrial Training. Its

ckXMiu and footwear

Ate -to he axed. '*

; Empioymeqt in . fibres has
dwindled Trofir. 10,200 in 1973
to the presqqpT.,500.

Training Jbr-' the Future;

services would be available to . oroilabto from. 'Deportment nf
voluntary training organisations Manpower Service#. Netherleiqh,
and it would have a new duty to ' Massey Ave. Belfast, BT4 2JP.

Rupert Haifibro’s new job

BY ALAN .FRfBDMAN:

MANCHESTER International
Airport— one of only three de-
signated gateway airports in the
UK— would he demoted “to the
refe of ^.regional airjtortif the
Government -decided to .develop
Stanstai, - -northern business
leaders claimed yesterday.

Manchester Chamber of Com-
merce papers will fgem part of
a submission from the Associa-
tion of Chambers of Commerce
S iDdiiiiy into whether
btansted should be developed
as London’s third airport. They
argue that the position of Man-
chester and other smaller ato
ports in the region would be
seriously undermined.

Manchester is extending its
runway this year partly to try
to obtain intercontinental traf-
fic. but the Chamber said yester-
day. that growth would be
stopped in Its trades if a major
Stansted expansion went ahead!

•SHjs would weaken the
North’s economic infrastructure
even though airlines wished to
continue serving the North of
England as an- wfennfiame
region through Manchester.

Referring to Stansted,'' Mr :
Melville Bingham, chairman, or
the Chamber’s air transport;

committee, said that
Government to sanction toe in-

vestment of a richer £lbn in
this privileged fcjer of the
country would beVpssIy unfair
and totally inexeu*>ie.”

At least 13m paaigers could
be accommodated akanefcester
and other regional uports on
services which' wod be con-
venient for the pas^ger and
profitable for airl

Making greater uMof reg-
ional air facilities “ wdld boost
industrial . and ' commAtal re-
generation in toe regti and
release a large proportidof the
£700m earmarked for ousted
for investment in uVently
needed regional InfrastrtAire.”

Manchester handled pa®.

sengera last year and was used
by 40 airlines serving almost
100 international destinations.

Bafibfs futures . mem

The Chamber has accused the
Government of trying. to stifle
Manchester’s ability to compete
for. international air traffic, in-
cluding freight

"Licence applications by op-
erators wishing to use Man-
chester are blocked time and
time again — playing into the.
hands of the civil servants, the
British Airports Authority and-
British operators, afl, of whom
appear bell bent on - a major
concentration of services and
facilities in the South' Kaat."' "

NATIONAL Westminster
Bank has formed a £Im subh
sidlary, NatiowU Westminster
F i nanc ial Futures, to- operate
on the group’s behalf ^on the
London Intmmatlonal .Tiara-
. dal Futures Exchange. - The
value of the market 1 toy
.particularly in the opporttint-
.ties to hedge interest rate-,
exposure, the group-said. For
: National Westminster that,
wvfrrmore importantthra
hedging cumiwy esposure,
for which faculties already
existed in the .fonram
. foreign exebange nuiriceL

■MR Rupert - haMbro. who
last week' resumed charge vof
the international, banking-, busi-
ness of Hambros . JSank / when
seven senior . Hanffuns - execu-
tives : resigned: l hsa ■-'. been
appointed a deputy chairman of
the bank. • .. . ■ v. •.

Mr Harabro wfli have overt!!
responsibility - for the . inter:
national side of the bank,
especially overseas dealing: The
other deputy chairman .is Mr*
John Clay-- - .. ;

Tl»e hhnK does', not' plan to.
recruit any outsiders to. replace :
the seven . executives who left.

to set, up: a new.. investment
Wide

bank. ' under the dsArella' of
toe ' * Scandlnaviska En^tilda
Banken, according. . td- : . Mr
Hamhro. “Cm not^oing to. go

. outside for anybody. We are
going to' replace the whole lot
: of ' them .internaJly,” he said. .

- Mr Ian Schmieselow. a direc-
: tor in the international banking
.01 vision, has taken over the day-
to-day. running- of Eurobond
:»qw issues, added Mr Hambro.
nr -Jamie Hambro has stepped
■ in to run ■ the bank’s Swedish
business pn. 2 “protein" basis.

• = 5^5?^ yesterday launched
m ^“TOrteriing bond for
Hy< *n>.: which is 51 per
by . toe Norwegian
Hambru

7 2°* that toe bank
jute ^tiU inflnentiai in Scandi-

Hanibrbs Norsk Hydro issue.
Page 28

Lafite price up 13-fold

8y EOM UND' PENNING^ OWSELL '

TllE HIGHLIGHT ywterday. of '
Christie's finest and rarest wine!
safe waa£U50 given by a trade -
■buyer. magnum. ittf Laflte -
IfiTO.Wlne^i in the GUmis Castle *
wine cellar sale of: Jiuxe 1971
made £85. ' • . .- ••••••/-'v '-. -.- ;

And a curiosity wat a j <»llec-
tion of 72 bottles of different.
Sqotcb malt uSjisld«s . sirf went
for £850. ' . ,T-.. . ?

• --Thanks, largely . to^AmMcan
bidders and those buying: for
that jnarket, prices _of clarets
ancient and modern .continued
Uto firm trend evident aB this
year,.- ...and. .in ' many cares,
estimates were exceeded.

Single, bottles of Lafite 1867 -
and Latpuf l^.mada £t45 and ;
£130 apiece. In the post war era
a 'dqien bottles 1 ' of Ch itargausr
readied sir bottles

aeb; of Cheval-Blanc *47 an *

•« St 0£

p-

Hauf^rion (£94 °/k^

SeyAevello -r cdftjrr . CF760),
Beaucamoa (fS? ^d Ducru-

■SrSSf*"

went

W Y^ e m )rd >5f UX toe

a Dome, its -V*

and the -’ 45- £i4^ 37 .^ ade
T _ a case - of

toe escepti6naK m ? dG
^.^sraySfof 1 ?^ »*<*'

H u :

■S-*

similar scheme has worked,
apparently with some success,
for several years, and made a
report tor the minister on it

Further pressure on toe min-
ister will come from toe Motor
Agents' Association, which will
son meet Mr Borrie and recom-
mend statutory backing for a
modified version of toe associa-
tion’s code of practice, covering
sale and servicing of cars.

The code, mandatory for the
association's . 15.300 members,
insists that dealers display • a
“check list” about a used car’s
condition on the windscreen.

The OFT says that last year
60.700 complaints about cars or
accessories were made to trad-
ing standards: or consumer
advica offices, topped only by
.-comnlaints about . ' household
appliances.

tL-.-v

' -i

3

. 0 iJ-

11

Financial Tinies Friday June 11 1982

UK NEWS - LABOUR

: Teachers
awarded 6%
risehy
Acas panel

■By “Pfiilip Bassett, Labour '

Correspondent

_ TEACHERS IN Engl and' af-wi
. Wales were yesterday awarded
. pay rises of 6 per -cent by .an
arbitration tribunaL Education
authorities, which origlnMly
offered 3.4 per cent; agreed to
“ arbitration only after the
teachers took industrial ‘action.

The award, by a" panel set up
> under .the \ auspices , ’of. the
: Advisory; Conciliation " and
Arfntration Service, -would, add
£224m to the easting' pay .bill
for the 440,000 teachers of
£3,720nt..

. The GovenHneptjiaS .yet to
accept the result .of the arbitra-
tion, the teaching unions’ claim
-for rises 'of about. -11-12. per-
cent; but it may have to unless

- it argues hefore p-arliameirt that
it canDot afforif to. '

- Tile ■ Government lias also
refused to* pubia^v the award,
which as wedl as recommending
a & per cent increase; mil ces a
number of suggestions on
arrange-
ments.'

It states: “We have been
struck by the absence of iany
sustained serious . • collective-
bgrgajhing by the parties.”
Acknowledging that this could
be the effect of ad hoc inquiries
into teachers’ . pay. 1 - it- recom-
mends A joint review-df bargain-
ing procedures. Which 'would
also take- into account pay
principles.., . ±

However, on tbepebZic sector
questions^ of comparisons with
outside pay,' the ' confidential
report states: “ Comparability,

: which itself is not a simple con-

- cept, is only one ..of a number
■ of considerations which parties

Will take info account” This
mirrors Government thinking on
nurses* and ami servants’ pay.

The-report suggests that both
sides “ could make a serious and
sustBined.ioint effort to improve
the data base' for negotiations,
covering pay levels, salary
structures and other matters."

The Association of County.
Councils said that some authori-
ties would have to make “ com-
pensatory savings ” to fund the
award., the rejection of this
by teaching unions, . which
angyed that .many authorities
had budgeted . for 6 per cent
rises, is borne- out by the
arbitration award, which states:

' In making this recommendfi-
tion ..we trust that, it will not
lead ,to any accderathm in the
-'ongoing reduction of. the total
number of teachers by .the
13.500 assumed by the Govern--
ment." .. . ..

The dwaj-dwouM take the pay '
of an average ~ teacher ;from-
£7,645 to £8,103. The average
head teacher would rise frtm
£11.462 to-£13 150,-and the small
number, of “tup head * teachers
would exceed £20,000

British Rail unmoved by strike call

BY PHILIP BASSETT. LABOUR CORRESPONDENT

BRITISH; RAIL . yesterday took,
-a firm . pubHc stand over the
threatened all-out: strike by the
National Union of Baliwaymen.
Senior BR officials Insisted that'
-no more than -the current-offer
of a 5 per cent pay rise could
be put forward, and that pros-,
pects of avoiding a strike were
gloomy. ■ -

. However, other BR officials
were : more - hopeful that the
three -wee^s before the . strike
is due to start on June 28 would
give the BR Board and -the NUR
enough time to reach a .- com-
promise which might include a
change; of the present offer. '

Mr Cliff. Rose, BR Board mem-
ber .‘for personnel, insisted yes-
terday that toerq could be no:
Improvement in the offer of 5 1
per cent [from September. The
NUR Would have to comply with,
the productivity conditions
which were. ftrmJy attached to
the; offer. .

He said that if the NUR strike
yirere to go ahead, then the 3

per cent would be withdrawn,
as BR warned it would be when’
the offer was made.

. . One senior BR official said
the position looked “very
grim." But others were more
optimistic, although they
acknowledged that — despite
- recent olive branches held -
out ‘ to ■ the NUR, jSuch as ■
deferral of planned workshop
closures and proposal of a
special payment for agreement
to flexible rostering — confronta-
tion with both BR manual
unions seemed to be looming.

However, they thought that
the .reason behind the NUR’s
strike call was as much to
admonish Mr Sid Weighell, the
NUR' general secretary, as it
was to show industrial mili-
tancy. NUR -executive members
of all political complexions .
.were annoyed with Mr Weighell
.for appealing to form union
policy on his own rather than,
.through the executive on such
issues' as the Labour Party and

separate pay settlements with
|R, ’

'Some thought that the coinci-
dence of the strike date with
toe. opening oi toe NUR annual
; general meeting at Plymouth
..might .make a deal harder to
r'eadh, but others thought Mr
Weighell might have mare
-success in getting a deal through
''conference than through the
executive.

. While £R was publicly dis-
counting it, any variation in the
nffpr could come from a change
in its- implementation date.
Further money could also be
obtained, ,if. discussions on the
outstanding productivity issues
were near 'enough to completion
by the' deadline mt the end of
July.

. All sides are looking for pro-
gress from possible, though in-
creasingly unlikely, negotiation
on -Wednesday; nr from a meet-
ing the following day oi the Rail
Council, wiyoh will be attended

by Sir Peter Parker, the BR
chairman.

The white-collar Transport
Salaried Staffs* . Association
wrote to th» Board yesterday
to call for a range of- talks to
avoid confrontation. It offered
: to go to arbitration if hecessary.
The Bo.ard is likely to reply to
the union today. .

Peter Riddell, political editor,
writes: Senior Ministers are.
determined to take a tough
line over the threatened British
Rail- strike. Mr ..David Howell,
the Transport Secretary, will
not interven'd directly or
publicly at. this stage, but he
will be kept closely informed'}
behind the scenes.

Ministers are fully prepared
to weather an indefinite stop-
page and there will be strong
support from Tory hack-
benchers, including those from
commuter seats, who believe
that the long industrial rela-.
tions problems of BR have to
be resolved.

‘Uncontrolled’ spread of
new technology attacked

ST OUR LABOUR STAFF,
ms ASSOCIATION of Profes-
sional, Executive. Clerical and
Computer Staff, Apex, yesterday
published a report which damns
that new technology is bring
introduced In toe South-East in
an “ uncontrolled fashion.”

It also says that new tech-
nology means job losses and
health -and safety hazards. -
The report is based on a 2931
survey carried out by the Apex
London and Home. Counties
Area Technology " Committee.
Representatives of about 10,000
Apex members took pari.

Respondents to the survey,
mainly troan offices in the
engineering industry, say that
thd increasing use of mm i-com-
puters is leading to a loss of
jobs m data processi ng.

Over 80 per cent szdd that
visual. display units axe now in

. use. in the workpiece. The re-
port warns: “The introduction
of now technology it form
' can. undermine toe strength of
toe union and i%s ability to rep-
resent its members effectively.”

It also says that there is no
provision within present health
and safety legislation to control'
new technology, and that 60 per
cent of respondents to the
survey had not been properly
trained in the new systems.

The report concludes: “New
technology is as big a threat to
jobs as toe Current economic
situation, and many employers
are using the economic climate-
to introduce new technology
without agreements.”

It recommends: proper agree-
ments for.- all new- technology;
an effective' monitoring system
and proper training.

Telecom overtime cut call

BY OUR LABOUR STAFF
THE POST Office Engineering
Union's annual conference yes-
terday backed moves to restrict
overtime - for .- engineers - in
British Telecom. '■

The 130,000-strong union will
flow seek an agreement with BT
management cutting average
overtime to two and a half
hours per man per week — with
a maximum of eight hours a
week.

The POEU is anxious to co-
operate on increasing BT orders
but Wants to create more jobs
not more overtime. The union
will tell BT at a joint meeting
on July 8 that -it now wants a
code , of practice- on manpower
planning.

Ag ains t executive advice the
conference also called for com-
prehensive changes in mem-
bers’ rights following alleged
harassment by BT investigators.
The executive was ordered to
press for the right of members
to bring in union officials and
solicitors when called * for
.questioning.

Conference also decided that
a member found guilty of an
offence should .not be dismissed
automatically.

Mr John Scott-Garoer. a right
winger, was re-elected union
president with 94,400 ••votes
gainst 36,460 for bis left-wing
opponent Mr Tony Young.

merger
Serck is given all-clear

BY RAY MAUGHAM/

THE. MERGER between BTR
and Serck, the valve-manufactur-
ing group, has been deaxed by'
the Monopolies . and Mergers
Commission. 1

The commission’s report, pub-
lished yesterday, concludes that
tiie mefcger is not “ hkely.to have
any material, adverse effects on
the public interest.”'

The five members, of the
inquiry which ■ examined the
merger. -believed it “may in
fact have some advantage to the
public ' interest in that- the
greater strength of BTR as a *
-manufacturer of fndurtrial
valves and actuators may enable
it to compete more effectivriy
in this, field both in export
market^, and against foreign .
. competition m this country.*’

BTR 3 broad-based industrial
holding company, first hid fot*
Serck m. September 'when the
combination of a market raid
and the purchase' of a significant
.shareholding from . . Serck ’s
earlier suitor. Rockwell Inter-
national, -gav4 it a 41 per cent
holding. Further purchases had
given BTR majority control
before Uie £25.5m deal was re-
ferred by the Office of Fair
Trading to the Monopolies
Commission.

There are three.broad strands
to toe commission’s findings.
Much of its investigation; which
began on November 6, has been
concerned with the shape of
the UK industrial valve .market
and its future following the.
merger of Serck with BTR's own

ENTE RPRISE ZONE
UNKSJE EACKAGE
mducft^lOyeaisratefree .-

100 % capital allowances.
Relaxed planning regime. .
22% RegranalOevfilopment
Grant and ECSCcheaptoans .
For details of sites and ; -
units-E. Moriey,

Industrial Dwetopmert
Officer Civic Centre,-
Hartlepool

Telephone: 0429 66522.

valve -and actuator manufac-
turer. Worcester Controls. . 1

The commission considered
the industrial aspects of the
valve industry and also the
effects of diversification by a
broadly-based holding company ,
or conglomerate.

Finally, it gives an account
of the unusual circumstances
which preceded the decision by
the Office of Fair Trading
recommendation to refer the
deal.

The investigation, beaded by
Mr J. D. Eccles, discovered that
. the total market for industrial
valves in the UK was worth
about £26&m in 1980, of which.
BTR and Serck had a combined
7 per cent share. But tie market
segment which concerns BTR
and Serck comprises on/off
valves which are principally
quarter-turn, gate, globe and
diaphragm categories.

This market was worth £206m
in 1980, including £57 m by over-
seas manufacturers of which
Serck and - Worcester had an
aggregate 8 per cent stake.
This share, tire commission
found, consisted entirely of
quarter-turn valves in which the
two groups had a 21 per cent
slice of the market, valued 'at
£71m. .

The quarter-turn market,
however,- breaks down into
three basic types: plug, butter-
fly and. bail valves. The com-
mission concluded that “tech-
nical and price, differences
between 'them are sufficient to
justify their being, regarded as
three separate categories.’’.

The. merger “does not result
in any increase in the share of
plug or butterfly valves, both
of which are made by Serck and
not by BTR?'

The enlarged share of the ball
valve, market might be expected
to have a significant effect on
competition... the commission
noted, bnt even this sector con-
sisted of different types “ which
cannot be regarded as close sub-
stitutes for one another.”

BTR’s share of the general
purpose, toreepiece ball valve
market would be increased only
“by a negligible extent” by
Seznk’5 own sales.

“ Moreover, before the merger
Sen* was intending to abandon
production of these valves.” .

High specification one-piece
and two-piece valves are made
by both companies, but the
overlap is unclear ** because toe
valves tend to be differentiated
by their design specifications.

the materials of which .they are
made, their applications and toe
industries in which they axe
made.”

The commission said it was
“ required to specify toe
particular effects adverse to toe
public interest ” when consider-
ing the “possible detriment
which mijtot arise from ' a
merger “ which adds to the size
or complexity of an already
large, diversified group of com-
panies.”

It found that the merger
would not • bring BTR to the
point where its increased size
became “incompatible with,
.effective control and toe effici-
ent use of resources.”

It goes on: “Indeed, with
access to the financial resources
of BTR. Serck’s industrial valve
production may well be better
.able to' meet increasing foreign
competition botb in bopie and
export markets.” '

The commission felt too, that
the merge? with Serck -would
not tempt BTR to use profits
from some* of its activities to
adopt pricing policies which put
pressure . on c ompe titors in
other markets. BTR stressed
that “cross-sitosidisation” was
contrary to group policy and
the commission accepted toe
point.

The commissi cc said . the
increased diversification could
lower toe standards of reporting
disclosure, but it believed dis-
closure provision was a “wider
issue” and “it cannot be said
that this particular merger is
to be. specially criticised in this
respect."

Tbe report traces the steps
BTR took to win control of
Serck before the Monopolies
reference;

These included BTR’s moves
which, gave it outright control
of Serck. It ‘summarises the
points the Tak eover Panel noted
before giving BTR special dis-
pensation to complete the
merger, against City Code rules
which' obtige toe bidder to let
an offer lapse.

The commission has noted toe
procedures by which the Take-
over Panel has sognht to pre-
vent such sudden transfers of
control of companies, but
stresses that suer changes fall
outside toe scope of a Mono-
polies inquiry.

* BTR Ltd and Serck Ltd, a
report on toe merger; the
Monopolies and Mergers Com-
mission. HMSO. £4.80 net.

Editorial comment Page IS

Lloyds Bank staff seeking
‘new type’ arbitration deal

BY BTttAN GROOM, LABOUR STAFF

LLOYDS BANK staff are seek-
ing • a so-called “flip-flop”
arbitration arrangement similar
to Toshiba’s much -publicised
deal with the edectridans* union
at Plymouth.

The 21,000-member Iioyds
Bank Staff Union wants this to
form part of a co-operation
agreement to reverse a steady
deterioration in industrial re-
lations.

* The “flip-flop” idea is that
arbitrators cmnot make a com-
promise award on, for instance,
a pay claim. They must opt for
one side or toe other — which in
.theory makes both put moderate
offers and daims. for fear of
losing if they appear unreason-
able.

The bank appears lukewarm
both on tins and toe whole co-
operation agreement idea,
irihiab would involve more con -
sidtathre sessions on issues such

as- planning and marketing. It
has yet to respond formally.

“ Flip-flop ” arbitration was
suggested by the Clearing Bank
Union, to which the Lloyds!
union belongs^ to resolve the
national-level impasse between
the Federation of London Clear-
ing Bank Employers 'and its two
rival unions, which do not have
a . procedure agreement. The
situation remains unchanged,
however.

Arbitration under the Lloyds
Staff proposal would be binding,
and compulsory ' if either
management or' union de-
manded '■ iL Such unilateral
access to arbitration has now
virtually disappeared from
English dealing banks.

One of its last vestiges was
an arrangement for managers
at Lloyds./ under which the
union recently won a 10 per
cent award.

Workers to
fight Shell
Chemicals’

closure plan

‘By Nick Garnett, Northern
- - Correspondent

.A MEETING of about 750
, -workers from Shell Chemicals’
Carrington ‘ complex near
Manchester voted yesterday
.it® back a campaign of . indus-
trial action .‘ against any
decision, to close the works or
"Impose ; compulsory - redun-
dancies.

*. ■ But the recommendation
from shop stewards also in-
'eluded a willingness to co-
operate with, management on
. some form of rationalisation,
provided a proportion of the
2.000 jobs are saved and the
complex' put on a secure
footing.

The site was responsible
for almost all Shell Chemicals*
£45m loss last year. The com-
pany ‘is due to decide next
month what action to take, to
stem the losses.

' 'Shop stewards fear that toe
company may decide to shut
the whole site and there are a
range of options It has-been
studying to shat down parts
of toe plant One would be to
close about 270,000 tonnes of
annual production capacity
With the loss of 1.000 jobs.

Workers who did not attend
yesterday’s mass meeting will
consider the proposals on
Monday. The shop stewards*
recommendation includes
industrial action to save jobs
in the event of a closure
decision and strikes If the
company drops its normal
policy of voluntary severance.

'A third recommendation is
that trade union officials will
be - empowered to negotiate
the most effective means of
guaranteeing a secure future
Mr Fred Green, the. Trans-
port 'and General Workers’
Union convener at Carrington,
said the aim was to ensure a
“peaceful transition” for toe
site through vountary redan- '
dancies. '

Transport union has!
£3.4m surplus,
but membership falls

BY. JOHN LLOYD, LABOUR EDITOR

THE TRANSPORT and General
Workers Union — the country’s
-biggest— * will shortly report a
£3.4m surplus for last year des-
pite membership being cut by
100,000 to 1.7m.

The union’s relatively healthy
financial position — at a time
when otoer unions are in con-
siderable straits — allowed it to
pay its 939 . staff’ and 569 full-
time officers wage increases of
9 per cent -in a recent settle-
ment. they also got five-day's
paternity leave entitlement and
oth er fr inge benefits.

TGWU. national officials earn
about • £13.000. while district
secretaries earn about £1 0.000 .
Mr Moss Evans, . the TGWU
general secretary, would not dis-
close bis own salary nor those
of his senior colleagues — but
said it was significantly- lower
than salaries paid to general :
secretaries of much smal'er
unions. Mr Evans is under-
stood to earn between £18,000
and £19,000.

The union's general fund
stands at £42m, with its assets
valued at historic costs. Mr
Evans said a current valuation
would add a value of baif as
much again.

The TGWU has achieved this
in two ways: by doubling its
contributions over the past two

years to a minimum level of
50p: and by avoiding wide-
spread or prolonged strikes and
thus the need to provide strike
pav.-

Mr Evans underlined this
point yesterday when he said
the union would not make a
general call for industrial action
by its members in support of
toe health workers’ action —
though he said TGWU members
were free to take “spontaneous”
action in support

In toe course of its quarterly
meeting this week, the union’s
general executive:

• Agreed to submit two motions
to toe TUC, one condemning toe
Government’s handling of the
economy and calling for a future
Labour Government to imple-
ment a reflationaiy policy, and a
second calling for an increase in
pensions and the exemption of
pensioners from standing utility
charges. The first of ’ -these
motions is to go as the union’s
one resolution to toe Labour
Party conference.

• Condemned toe Argentine
invasion of the Falklands and
the Government’s handling of
the crisis — a motion which
stopped short of demanding
withdrawal of the task force;
and called for an end to Israeli
invasion in toe Lebanon.

• Reviewed the possibilities for
further amalgamations, includ-
ing a number of small textile
unions, the sneetmetal workers
and the National Society of
Metal Mechanics.

In his report to the executive
Mr Evans expressed concern
over the poor performance by
the Labour Party in recent by-
elections. However, he refused
to be drawn into speculation
over toe leadership of toe party,
saying there was no need for a
change in leader. The union's
executive has said that it sees
no need for a contest for the
posts of leader -or deputy leader
this year.

More surprisingly, it has
decided not to nominate a can-
didate for treasurer of the
party, dropping its traditional
badting for Mr Norman Atkin-
son. MP. It i$ to nominate Mr
Alex Kitson to the party’s NEC,
and has selected Mr Doug Gray,
an executive member ami a con-
venor at BL’s Solihull plant, to
take toe place of Mr Stan
Pemberton, the retired TGWU
president, on the TUC ’5 General
Council

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4

UK NEWS - PARLIAMENT and POLITICS

Nott promises MPs ‘another victory soon’

the ulster filibuster

BY JOHN HUNT, PAMJftMBfFAftY CORRESPONDENT

MR JOHN NOTT. the Defence
Secretary, told the Commons
yesterday that British forces at
Port Stanley would " go forward
with another victory very soon ”
despite the setback suffered
when the landing vessels Sir
Galahad- and Sir Tristram were
hit by Argentine bombs wtoHe
unloading troops at Fitttay
settlement.

He was not prepared, at this
stage, to give the number of
British casualties resulting
from the attack as this could be
of assistance to the enemy and
put our men aft greater risk-

Mr Nott emphasised that the
plans of the task force
commander. Major _ General
Jeremy Moore, had not been
prejudiced by this attack and
others which 'had taken place on
British vessels in recent days.

Nott: plans not -prejudiced
by attack ■

civilian population brought out
of Port Stanley. The Red Cross
was working -on this but so far
there had been, no satisfactory
. response from the Argentines.

“ Our abjective in the short
term is to : removal of The-
Argentlnes from the Falkland
■ Islands." be declared. “ There
is nothing more the UN at this
moment can do to. bring that
about i

“It -can only be brought
about by British forces on the.
ground. We. have given every
opportunity for the Argentines
to withdraw. They have Turned
every chance -down and We
must now remove them by
force.” • ■ ■

Mr Tam Dalyell {Lab West
Lothian) said that if Argentine
aircraft were always going to ‘
get through then Britain was

Bill

by MARGARET YAN HATTO*. POUTFGAL STAFF.

Whitelaw: situation has
moved on

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Britain had at any. .time
demanded ' unconditional ■' sur-
render. '.If the Argentines
wished' to withdraw they: would
be given- time to do so with

• ■ Iheir THE GUILLOTINE is likely to Bri^toAParilibn)^ mbled off

fan on the Northern Ireland tapjate into Chaneert Pmr<«' t
Bill in tiie next 10 days or so. .Tala.. . -- .

The Government will probably. Even if some influential mem.
announce next Thursday its bers .of fee Cabinet me. not
plans, to Introduce a timetable enthusiastic about “the
motian on the Bill to cat short and .snauy ~off the ' SSwsters
the small but dedicated band belieye ' they , have fee tacit
of filibusters 'who have pro- support, of - both ' fee .rPriine
longed debate until breakfast Minister and the Leader of the
breathing space before they can time twice this week. House, Mr John Biffien— the

express, feeir views about theur - (^ ee f^i . Tory backbenchers Watant, -he^vy-fianded use of
own future.” '. had been congratulating them- filibuster- tactics has . made it

• In the text of a letter to Mrs seIwes on (^eir success so far virtually - impossible . for fee

Thatrirer released last nigbt Mr hi -employing the classic -fill- Cabinet to refuse a guillotine
Foot ; underlined his caB for a buster tactics— endless - amend- lest it be accused of cqnnifMrce
fresh approach .to the UN. At meats> interjections, points of fe- these tactics. - , v
the- very leasts he urged, it divisions on- eVEfF- lahour. will, on principle.

landings on the islands and fee
losses We; have incurred', it
vpndd be uuthinkafaleto nego-
tiate about the future of the
islands ' as ' if everything was
st±H as . it* had been before.

“ The sBtoatibh has moved on.
The ' islanders -.will need a

The losses in stores and equip- which toe task force currently facing another Vietnam in. the . deputy Conservative leader, wotdd be worth giving, toe pQggjble occasion. After 30 oppose tie guillotine .though

ment were already being made lacked. He added, however, that south Atlantic. Before going 'ahswetfeg questions in toe - Argeatabesan under takin g that ^ours of debate, the- House is La bour whips might to*® 4

i« «,>»» the two carriers and other- any further “ into this mire ” absence of Mrs Thatcher, discussi o ns w ould reopen as stm struggling with clause one Wind eye at a few abstentions

socm as they 1 completed their ^ the seven-clause Bill. .if they .thought the motion was

wl H Uir ? w ... . But they appear to have over- in real .danger of defeat Ihe

Mr Foot behoved there was done it. The best filibusters arc < 5 overome>dt is likely to hare

growng . supp ort waid Aose wilere conceals art tito support of a/.gnwfag

opinion -for.- -a farther. Bntlsn where toe arguments -have a number of uosavolyed back

initiative at toe UN and thought semblance of seriousness and benchers-,.

“vr where accusations that members Occasionally the frivolity
-are deliberately wasting time drops away and the case argS
5* can b e denied with a straight by Mr Prior and his ministers

JSSf 5H *«■ i» their White Paper and ia

*5?.“ ^ave ^ *** * .This week toat has patently the- Bill is tackled seriously.

nrrt been the rase. On Wednes- The Bm rf the .centaa iaa K

good from stocks held ashore.

He was also satisfied that the
commander bad made toe right
decision to send vital equipment
And men around toe island in
the landing ships.

Air patrols had been going

___ into this hrire” absence off Mrs..

vessels in the fleet did have the he urged that the task force rejected renewed demands from
most modern, radar and com- should be withdrawn. . Mr. Michael Foot, the L fthmir

municaftions system pad this Mr Nott told him it bad been leader, for another approach
had worked magnificently in a remarkable feat to despatch to the United Nations on a
conjunction wife toe Harriers. . the task force-' and lend it on ceasefire. • . :

“ 1416 ^ FaUdands - successes Mr Foot arid fee Government
on ad the time and warships Prune Minister had done on since it arrived had also been should go again to the Security

had been deployed. Despite this Tuesday, that Britain was not remarkable. ■ ■ . Council to see “ wh»t altema-

some Argentine aircraft bad got going to return to toe United . Mr Nott felt that the analogy, tlves to unconditional surrender

through “ and that may always Nations to get a ceasefire but with Vietnam was .entirely could be offered to toe Argen-
tic the case however effective intended to remove toe false. The Falklands operation tines." ' • "

our a& defences may be.” Argentine troops fay force. had been a series of major He added: "IS the- ; fighting

The Government, Mr Nott He explained that -Britain victories with some -setbacks continues to the bitter end many British victory was not to be dav when Mr Nicholas Budgen -emerged 'early in' Wednesday-*;

vsl uvm fritrincr auritf rAnCiriArtl- huH nppn in 1 tAfinh unth fJiP onri A?ir fniviac 1 A* — . #ATlAuK>r9 kv /vmfinvtori firmn. way ^ __ 7 * 6

Capital gains tax compromise outlined

BY IVOR OWB4

MPs press
Tebbit on

affect

A POSSIBLE compromise, to Exchange account He admitted
meet Tory hack-bench objec- feat the alternative — which he acquired
tions to the Government's pro- put forward as “a possibility ” parcels.

posals to index capital gains tax,
was outlined last night by Mr
Nicholas Ridley, the Financial
Secretary to the Treasury, to the
Commons standing committee
considering the Finance BilL

with a loss of less than £5,000 through unit trusts,
not permitted to be carried for- Mr Ridley retorted: “ You do
ward — would be a measure of. not have to buy shares month
rough justice. - by month in the same company.

small investors who the City and industry believe
shares in " small most strongly that the present
month by month, proposals are not only exces-

sively complex but axe unwork-
able."

Mr Beauznont-Dark said it
had been calculated that the

union

By Our Labour Editor

THE , GOVERNMENT, may
introduce a Green' Paper on
internal trade', union reform

filbusters urged Mr James Prior, of either 70 per cent of the
the Northern Ireland Secretary members of .a new Northern
of State, that the issues ■*? have Ireland assembly or of a
to be debated fufly and majority including all Sections
properly" and gat the retort: ■ of the community. _■ '. . _

“All I can say to my Honour- This is intended to ensure
able friend is come off It," the that the mainly Catholic
chamber broke into - con- nationalist, -piinority will have
splratorial chuckles. an effective "voice, --But as the

The Northern Ireland debate shadow Northern Ireland Secre-
has- seprated the men from the tary, Mr Dqn Con cannon,
boys. In the former category pointed out, the 70 per cent
come seasoned players usch as can be achieved without
Mr Enoch Powell (OUP South' minority representation. Indeed,
Down) and Sir John Biggs' he suggested, it could be worse

ad^wleSTS

Wts: .KK3S 4 SS ESSSglSfitfiSX ■^jE2?-Fa , “--2“

tive terms, any loss in excess
of £5,000 would be taken into
account in the computation of
liability to capital gains tax.

Mr Ridley firmly resisted a

the committee could suggest

that the justice involved in that

is too rough.” While accepting JSSSTLSSSSS
4 h* inUmti,. Ai,i,rtu- {« complex calculations.

Mr Anthony Beaumont-Dark

managers, and not the small .to something more than- 7 per union officials. Th - ha _

investors themselves, would be cent The cose for a eoMulative assem bly mebers, oven if they

principally concerned wife toe

tions command attention. * But fee support of 70 per cent of
by the boyg sueh-ds Lords Gran- were all - unionists. - He urged

that the indexation clauses in
the Bill were complex, Mr

proposal from the' Tory back- who proposed toe alternative pointed out that only 2 pgr Tebbit,

knneliae fn. o mncMil e iw i mn ““I luvwiwf, pdTUUulUTy ephoma /laciono/l In nannlf iwnf urae omnnntail for Ktt ovfvu Ca aenl n

small ones, to avoid tnem by

benches for a revised system
of indexation designed to permit
fee continuance of bed-and
breakfasting — the device which

cent

Mr Ridley -commented that it document on the issuewsa bfe-n- /Cm -nofspt SontM who
might cost 7 per cent to change pressed yesterday by the Con- ^-SEhEJE ? 70 P* r <*& dropped

M.mce f»rv a «^,tn+ ^TradeUnioiUsts at a ^ a amonWednesday diverted in favour of a Stronger romnur-

wiih Mr NoitLo *** somnolent chamber with a ment to cross-community
X? motcr racing. and Mr Ivor Stan- support. .

the .Employment brook (Cim Orpington), who ‘ The importance of the issue
made a moving plea fo rtoe - was ... underlined by • : an

(Con, Binningham Selly Oak) rather than within one. But he meeting

n , . ... , - o . bed-and breakfasting" to con- stamp duty. “The other 5 per The group intends to raise the J™!' 7" “

not holding feares m a pool. tinue.said toe degree of con- cent is nothing to do with fee issue attbe Conservative' Party. ' *£!«&*£* ST?!*

Mr Richard Wainwrigbt (Lib, sterna tion which the Govern- Government — it's Stock Ex- conference later this year stay ong feto the nipht, and from the Reverend Ian Paisley
limits liability to capital gains Colne ‘Valley) called on toe menfs proposals had caused in . change commission. The Goy-

tax through purchase and sale minister to admit that the the City could not be stressed : eminent is hardly to be blanled

of shares in the same Stock Government’s proposals would too strongly. “Many people in for that."

mPKm* 'told I the Voup evea Julian Amery (Qon (DUP, North Antrim),
that he believed in giving toe

Foot prepares for battle with bard Left

unions time to reform their,
own procedures voluntarily. If
they did not, the Government
intended to art.

Next week in parliament

COMMONS

Thursday: Relief from For-

Mr. Tim Renton. tor Monday: industrial .Training , torture Bife. Second Reading:

K1 Chairman Ot tflC Rrarrt and Pnntnw.1 Vwr- TnTKnntt "RiP TComruI Wenfiivhcr.

BY QJNOR GOODMAN, POLITICAL OOfWE5PO*BS«r

LABOUR'S leader, Mr Michael pressure from some of his - tive on June 28. A conciliator
Foot, now see m s p r epared to former supporters to stand by nature, be only agreed to
risk a battle with the hard Left • down, he said emphatically in fee report after repated repre-
by taking some action against «n article in Labour Weekly, sentations from MPs who con-
tbe Trotskyist Militant Ten- 'that his chief aim was to lead vlnced him that the organisation
deucy organisation. the party to victory over fee was a threat to fee party,

win. nmifat m «n hstnn Tories. It Sa by no means certain that

With two weeks to go before Almost any action against Mr Foot will go as far as most

fee party*i. inquiry is due to
be considered by the national
executive committee, Mr Foot

Militant .Tendency would pro- moderate MPs believe is neces-
voke a storm of protest from sary, or that the report itself
parties and lead to another .will cafl for specific steps. The

&PP6&IS 3iUX20&t tO DC convinced mn£mrttjifir>n urifti Mr Tavwt fiar <vf tho ‘RioKt k (tk®f Vr

that the report will provide
conclusive evidence feat the
.organisation is hi breach of

Labour's rules.

This emerged yesterday
among other signs that Mr Foot
is trying to reassert Ms leader-

Berm. But it would be wel- Ron Hayward, the retiring
corned % by the majority of general secretary, will conclude
Labour MPs, many of whom that, despite the evidence, it
woidd lose aU hopes of Mr would be wrong to art against
Foot's leadership if he failed to . Milita nt

moderates beUeve

act on the report The

Mr Foot wifi pot decide what Labour will havei.no chance of

ship. Following suggestions, in to do until the report has been winning toe election if it is wfth alleged Trotskyists feey concern, which they guard
toe Press feat he was under considered by the full execu- seen to tolerate MiUStant within, will turn to alleged Bennites. jealously from intrusion

its ranks: The problem, for Mr
Foot is an action of the kind
deemed necessary by many
MPs could well provoke the
most bloody battle in toe
Labour Party since the elec-
tion./

There are signs that some of
Mr Berm's supporters would be
prepared to accept some action
against Militant, but others on
the hard Left are already gear-
ing themselves for a fight. This
week’s Tribune, which has been
taken over by the Bennites,
gives -a warning that a purge i$
being prepared. It claims that
once the “ purgers " have dose

Mid-Sussex and
CTU said, after the meeting,
that he believed there was “ a
very noticeable commitment”
by Mr* Tebbit to introduce
legislation if he' felt it 'was

fi P

He said the CTU would

institute further studies of its - lEaIian proposals- on European

Board Orders and Control of l Transport Bin, Second Reading;
Atmospheric. Pollution 'Northern Ixeiaml -Order. .

(Exempted . Premises) (Scot- - Friday: -. - Local* > ' Government
land) Regulations. . Finance 'RIU; japoit stage. .

Tuesday and . - Wednesday:

Northern Ireland BiH
Thursday: Debate on German/

own into, union rules. The
group has long supported
ballots and has called for an
end to fee political levy under
which members of unions
affiliated to the Labour Party
must contract out of the levy if
they do not wish to pay a
donation to that party.

Mr -Tebbit’s call for rule book
reform is unlikely to elicit a
voluntary response. , Most
unions see ride books and
internal structure as their own

union; . Clergy;,. .Pensions. |
(Amendment) Measure; Pas - 1
tonal • (Amendment) - Measure;
opposed private business.
Friday: Debate .on medical
education. .

LORDS

Monday: Lords’ expensed; ^Mini-
sterial and other salaries order;
Oil and Gas Enterprise Bill,
Report Stage.

Tuesday: . Employment 'Bill,
Second Reading;

Wednesday: Debate, on disarma-
ment

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Labour confident about
defending a bastion

THE STORMS of the south Nevertheless, tire Scottish But the smog has gone wife
Atlantic may 'just ripple toe National Party has ' issued a fee iron. So. too. has the Mrge :

surface during fee nest by- survey of voter opinion in Coat- steelworks of Stewarts and

_ -r— - bridge Airdrie which showed LLoyds, olosed during fee 19fibs.

feat 55 per cent of the elector- The British Steed Corporation’s

ate believed that fee Tories- strip works’ at Gartcosh Is- still

would form the next Govern- a vital employer. A shadow of .

ment. Only 36 per cent thought -fee region’s .'former textile
afaour would win. The SNP's .activity is still there but local -
findings showed that, among government now provide; most
Labour voters, 55 per cent

per

thought feat the party was not
providing an effective opposi-
tion.

This week the candidates are
getting feeir campaigns under
way. Mr Tom Ciarke (Labour),

of fee jobs — about 10 per cent
off fee workforce. Food process-

among women.

FreightUner and container
terminals have brought in some

election on June 24.

But Coatbridge and Airdrie,
for which nominations closed
yesterday is a constituency of
two communities very much
absorbed wife their own
problems, according to local
politicians. Its 62,000 : electors
worry about unemployment,
housing, glue-sniffing and each
other’s religion.

Hie Falkland?, according to
one sounding, is well down fee
list of electoral issues..

' The constituency, only 10
miles east of Glasgow, is
roughly rectangular. As if to
demonstrate its capacity for
insularity the proximity of
Scotland’s largest city does not
impress the inhabitants of Coat--
bridge and Airdrie, who do not
regard themselves as living in

a suburb off the Mg city. . ■ " — 1 -r 111 — — ■

It has been a Labour bastion provost of the local district . jobs but are. highly automated
for over 30 years with the council of Monklands, has given operations.

Tories only managing to bold his opening press conference;

■office briefly before that.

Mr Jimmy -Dempsey, whose
death has caused toe . by-
election, secured a 15.156
majority at the general election
in 1979. Despite failing health,
he captured 60 per cent of the

vote. Henderson, businessman and it Scotland has much more un-

Labour politicians are con- Liberal, fighting for fee tidy and^ rundown towns than
fident the seat can weather
many outside political develop-
ments. They' feel fee party’s
local roots are deep and able
to withstand toe traumas at
national level.

The by-election will he far

EmTAtretascofiRto

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' Aivisions is a school, wife
fence down the middle making
one part Sykeside school and

larse lienee «( ^Ip^en, Z

MM

■■LAMP

Nominations closed yesterday for the by-election
at Coatbridge and Airdrie for which polling takes
place later this month. The Falklands factor is
expected to weigh less heavily than local issues
with voters in the Constituency. 1 Mark Meredith
examines the prospects. . .

Unemployment, to Coatbridge

' MLANDN.V. .
NetheriandsAtihltes

"Notice of Annual General
- Meetin g bf Shgraholdeg. "

there tt stops.

Airdrie is usua-Hy portrayed
as a Protestant tow and Coat-
bridge as Catholic, although
feere are large minority groups -

„ Notice is hereby given that fee

vote would, nevertheless? make
it political suicide for any' sSnarehQldETOofNilandiN.V.'snll
candidate to speak oat too- beheld at the offices of the coto-
rigorously on matters of pany John B* Gorsnaw^ 6,
: abortion, in fee view of one WHIemstad, Curafao on 3 fltll

experienced local politician.

Coatbridge is dominated by
some large tower blocks, which,
unlike others elsewhere in
Britain, have not proved to be

Junel?8Za£lL0()atoi.

i‘-

The agenda of the meeting ffiri
feeamwalroportmaybootoi-

0 7 nn Ai SS^ o iS towards ' social hazards but have proved ned from fee coi^any orfiom

Mr Hugo de Burgh (Tory), a
television journalist, has

launched his campaign and Mr 1979. About a quarter ofT fee f^^idenV There "a’re K I
Ron WylLe, a lay preacher, ran, marie population is out of -a job. estater of Scco ’

nine for the Scottish National Despite this picture, of an- fee -thirties and *

Party, has already started .area to depressed -economic- fey issue will he fee nmih!
issuing leaflets. Mr - Sandy straits, fee towns do not show funds for modernisation ” *° r

About SO. per cent of the com-

Shareholders wifibeadmatedto

the-meeting on ptosentationof

Alliance, has
doorstepping.

Coatbridge and Airdriy shows
signs, common to many Scottish
■towns, off going, through the
throes of adjusting to the
closure of the heavy industries

a „ „ _ , , - — — , m unity live in council houses - voucters. ytoidh. tnay be obtoi-

^eady b?en tta trt !¥ r_ Party report, nedtam theheXfficosaftho

neglect, -such as vandalism and
a carpet of empty crisp packets,
do not cover the green areas .■
between the houses and fee to-
habitants have made some:,
efforts to blot out political
spray-painting on fee walls. -
Graffiti, most of it is support

sliffet response to Gpvenunent
efforte to sell off state housing
to the public.

. CANDIDATES

from a repeat of the Glasgow whitih led to their growth to - raypainting on fee walls. — ffimg Clarke ^Lab)

HiUbead contest where national toe first place. • Graffiti, most of it is support Hugo William de Burgh

issues and one national figure Coatbridge used to be known .- of fee IRA, points to fee strong" _ (Con)

in particular— Mr Roy Jenkins as fee “toon borough” after the religious factor feat underlines ' r - f* 1 ™F Henderson (Alliance)

—captured so much of the metal found wife fee coal politics In west Scotland. /• HonWynie (SNpj,

attention. Here toe issues are brought to from the Lanarkshire Sectarian feeling Is high, how . 1973: J - Ownpvvy

likely to be close to home and pits. A pesvnanent industrial high depends on wbom yoo.

the campaigning is likely to haze hang over the townships speak to. - majority 15 .I 68 . 11 t,,2S, ‘ ' . Ub

show it. near the foundries. ' \A monument to religious -

banks against deliyeiy-.of th©

shares on or, before 22od Jun8,

1982.-. , f :

Stobolderewho aremiableto .

attend the Meeting are invfted -

to vote byproxy.Thfi proxyfonn
|. can be obtained fitunfhe head*,
offices of tbe baaks.

Curasao, 10 th June . 1982 - -

Financial Times

rllamei

The Rover name stands for innovative design,
performance, prestige, technological development ,

and achievement _

Time-honoured and traditional qualities that
have long made Rover a very special driving
experience.

Never more so than now*

The new Rover 2600S comes to you with
advances in styling, in handling, in mnning economy
in comfort andin finishu

All newRovefrs are now pointed by the world’s

most advanced and proven paint technology.

The sleek aerodynamics of the Rover body
have been further advanced with flush-fitting

re-styled headlights, a newgrille, wraparound bumpers
and a handsome front spoiler forimproved road-
holding at high speeds. ■

At the rear of the car we’ve deepened the tail-
gate window for improved visibility, guaranteed even
in poor weather by a new, programmed rear wash-
wipe system. We’veredesigned the interior as well.

• The re-styled low-profile instrument binnacle
and centre console combine to give you fingertip
controls and quick-to-read instrumentation all in a
totally new driving environment

And, as you sitbackin supreme comfort, you’ll
appreciate that a traditional Rover luxury-walnut
panelling -has made a welcome return?

You’ll also welcome the fact that we’ve revised
the rear self-levelling suspension* and upgraded the -
braking system to bring you a more positive and
responsive driving experience.

The powerful 6 cylinder 2597 cc engine delivers
a combination of high performance (U6mph and
.0-60 10.3 secondsf) and exceptional fuel economy
(40.9 mpg at a steady 56mph).

Wdvealso extended service intervals to 12 months
or 12,000 miles (whichever comes first).

The Rover 2600S combining technology with
Rover tradition.

Ask your dealer for a test drive. And enjoy the
advanced driving experience.

. Uit'

ADVANCING THE

EXPERIENCE THE

IVIEETING OF TECHNOLOGY

WITH TRADITION.

14

Financial Times Friday June 11 1982 ,

TECHNOLOGY

EDITED BY ALAN CANE

How to take the laser plunge

BY ELAINE WILLIAMS

SUPERMARKETS are expected
soon to take the major plunge
into electronic retailing frith
the adoption of laser checkouts
— point-of-sale terminals which
automatically scan, price and
receipt customer's purchases.

Although laser scanning has
been available for years, it has
so far gained little acceptance
in the UK

Early equipment performed
poorly, and grocery items were
not packed so that they could
be scanned by the machine.
Now the mood is changing.

Magic

Nearly three-quarters of all
grocery items checked out of
supermarkets now bear a bar
code, the characteristic stripes
on the sides of packets. Accord-
ing to U.S. experience, this is
the magic figure at which it
becomes economically feasible
to introduce laser scanning sys-
tems.

All scanners use a low-power
laser to read these bar codes.
The system’s computer converts
this into a unique 13-digit code
which identifies each product

Once in the computer it can
be used to provide the custo-
mer with an Itemised receipt
and be used to automate the
supermarket’s stock control
and reordering.

Mr Ken Turner, marketing
director of Sweda International
— the latest company to intro-
duce a scanning system in the
UK — is optimistic that lasers

will begin to have an impact on
the retail scene in 1933.

"It’s been talked about as
the - greatest revolution -since
the introduction of self-service
more than 20 years ago," Mr
Turner said.

Up to 5Q systems could be
operating in the grocery sector
by the end of the year with
about 3,000 forecast ^by 1984.
Even so, this is only a small
proportion of the total poten-
tial market of 56,000 checkouts
in the UK

To date there are only 11
experimental schemes operating
in the UK and only one com-
pany, Tesco, has firm plans for
laser scanning.

- It has announced its intention
to instal 15 laser checkouts by
the end of the year in its stores
with an ambitious £90m 10-year
programme for a national sys-
tem.

The majority of scanning
systems available in Europe
are based on U.S. technology,
where lasers have been in use
since the mid-1970s.

In the Ui>. more than 5,000
scanning systems have been in-
stalled.

J. Sainsbury certainly has not
committed itself to one manu-
facturer yet, having experi-
mented with IBM and NCR
machines over the past two
years. It is presently installing
Sweda's latest scanner.

It is hoped that even small
retailers will be able to benefit
from better stock control

offered by laser systems.
Several leading voluntary
groups — Mace. Spar and Nisa
— all have experiments running
to test this theory-.

But, in the UJS., the introduc-
tion of laser systems was fraught
with problems and early systems
gained a poor reputation.
Checkout assistants often had
to pass an item over the laser
several times before it would
read the bar code successfully
, and register it on the till.

Glass plates which protected
the laser from broken packets
and spilt liquids,- became
scratched and discoloured —
requiring frequent replacement

But Sweda has taken steps
to overcome the problems
associated with earlier systems.
It’s latest: model uses four laser
beams to cut down the likeli-
hood of misspg the bar code as
the product passes by; and it
avoids the use of a glass plate.

Even so, better technology
and the apparent benefits gained
in the U.S; market will not help
equipment manufacturers sell
laser scanning in. the UK or
Europe. For retailers in these
countries operate differently.

In the UK however, it is usual
for only one assistant to work
at 'the checkout with the
customer wrapping his own
goods.

Mr Jeremy Grindle, a director
of _ Sainsbury and presently
chairman of the Article Number
Association which allocates all
bar codes, explained that this
means that European super-
markets do not see immediate
cost savings through- the intro*,
ductlon ' of laser scanning in
terms of staff reduction.

Marginal

Assistants

In the U.S. most conventional
checkouts in supermarkets are
manned by two assistants — one
to operate the till, the other to
wrap. Faster scanning by laser
means one assistant performs
both jobs.

Equally, he commented that
assistants working with conven-
tional tills in * the UK were
almost as fast as lasers. How-
ever, Mr Grindle is convinced
that there is a’ role for laser
scanners because of the better
management information.
"Every British retailer has to
do his sums more carefully
since he doesn’t have the easy
buck to save first,” he said. -
With present day laser systems
costing . between £5,000 and
£10,000 per checkout, Mr
Grindle says that even the gains
for a large organisation such
as Sainsbury are marginal.

However, advances in elec-
tronics mean that costs are
likely to fall and there are now
at least nine manufacturers, in-
cluding NCR, IBM and Sweda,
giving a wider choice of- equip-
ment.

mm*

Electronic retailing at a laser checkout and (right) the stot-hole^etaU of the.Swe^^

which, can^ identify each product v.

1 -■

i i?

i

I

, u

indicators

A NJ5W line oF. one. shot thermo- .
^sensitise tedtperafceire'iii^catoni
which - can- measure, monitor/
record add document: operating
temperatutes has ', ^been
'announced by . Cobonie. - . .

-Details' ffwn.:i Cobaoic ' af
Guildford (04© 5O5260J. '

ai’

. t'

Cops and robbers and root

..V

TECHNIQUES used to trap
bank robbers and catch badgers
napping may bold ' the key to
improving root growth in rubber
and other crop plants and if
that rendered the plants less
likely to being swept away in
tropical storms, the commercial
benefits could be significant.

Glasgow University. Botany
Department has been interested
in the way roots, grow for years.
Its problem has been finding a
method of studying the roots
which .does not alter their
growth pattemsr

' BY. ALAN' CANE J ^ -V.';. • - :

Roofs, like most plant tissues, - out^as ahi faw^tigatiye -method,
are susceptible to light- through Professor /Malpalm- Wilkins, .
a variety of mechanisms, some ' head, of ^ ■

of them involving the remark- hit nn -a novel - approach, while
able plant chemical - pbyto- watching : /a - teteVisioii-' - news
chrome. * - - report vpf. -caught

Phyto chrome, a complicated- rod-handed '• . by . Jhfr a-red . sens®-;:
molecule, is a living switchl tive camer&Sv,;. './V c . ::

Under the influence of light it Now;- iprofcsssor i Wilkins ; and --

switches on a whole list of plant -his associates Lisa Gould,' are /
activities from germination, of using cameras

— j- with Infraied j&jnsitivei to

record the . behaviour of theart
roots. .. -r.r- : v r : • • '

Dt. photography Is edmmoit- ..
place in natural -hi story work, 1 . ,
of course, but Glasgow, is com- '

. .. ® i>f «

wavelength which can be: -shown
nbt ' tu-: influence 'ptaastV growth
and .. magnifleatidh ^ teSnigques'
so - itet. growth, ijf ja^metfe is
thousimdtb of a toette/shows
_up; on the monitors as an eaaly
measureahle: 1 huh. .{ « -.

1 i

seeds to flowering.

Phytochrome is sensitive to
light in the red and far red
regions of the visible spectrum
so light microscopy was ruled

How Hlkington

An Englishmans home is his
castle. And you know just how
expensive tne average castle is to keep
warm.

At Pilkington, we’ve been
concentrating a lot of our research and
development effort on devising products
that will enable you to use more of .
the heat that you pav for.

Fibreglass Dritherm slabs for
cavity wail insulation in new buildings,

for instance, and a complete range

of insulation products for the rapidly
expanding field of timber frame
construction. And we continue to be
Britain’s leading supplier of DIY
loft insulation with Fibreglass
Supawrap.

We’re continuing to. make it harder-
for heat to escape (as over 20% usually
can) from your single glazed windows.
Our Insulight double glazing has
been joined by Insulight ‘KJ a remark*
able new unit which lets sunshine into
your home - then keeps it there.

It can give insulation that is twice
as good as ordinary double glazing.

And by letting more heat in than it
lets out, it can actually help to heat
your home.

We’re also exploiting the sun bv
producing solar heat collecting panels.
And in the USA - one of the 29
countries in which we manufacture -
we make photovoltaic devices 'that
convert tne sun’s energy directly
into electricity.

So you can see that we regard it
as our job to take the heat off your
fuel bills.

And, with over two- thirds of the
Group’s 1981 sales being made outside
the United Kingdom, we’re taking
some of the heat off the British
economy, too.

Enterprise at work.W)ridwide

’ "Why plants respona to light
and .--gravity,-, is pnljr. slightly
better understood , 'toaay than
wh<m_. Charles UaririnAcaiTied
oiit M$ : 'classic, studies i lag
century;..-.' The 1 WBtisfs •
Gould approach : may/show ’that
crime does payoff-S-atrleast; for
rubber plants. .

i

1

I- .-

I :■

Sodium pictmes firdin
the reactor core ^

A MAJOR step' forward, id moni-
toring exactly- ' what happens
inside the core of a nuclear
reactor has been taken by the
UK Atomic Energy Authority.

Scientists, and engineer
working at Dounreay have car-
ried ont successful experiments
to see through: sodium- — the
liquid metal coolant used-in fast
reactors. :

For' /the : first time pictures
have been received' from inside
Britain’s prototype fast reactor
at Dounreay. ,

In common with most. molten,
metals, sodium is opaque. So,
until. now, it bas not been pos-
sible to examine any fast re-
actor component in -which it is
immersed.

The UKAEA workers have
overcome this by using very
high frequency sound employ-
ing a technique, developed by
Risley Nudear Laboratories in .
Cheshire. • -

To produce pictures; a 30 ft .

• long tube .fitted with, ultrasonic
pulse-echo equipment' Is low.
. ered to wifitin inches qf'^tha
' reactor core-:

Pulses of high - frequency
. sound are transmitted through
' the sodium and the echoes, re-
ceived from the top of the. core
’■ are then coded and stored in a
computer.

The resulting picture can be
displayed bn a colour television
set, with different colours re-
flecting changes in the nuctear
reactor core. ,

UKAEA Isays that for the first
time scientists have been able
to pick out fine details ol the
core which lies 16 ft below tha
surface of a sodium pod.

The Authority- emphasised
. that the equipment is . still at
an early stage of development
but /it does promise to provide
scientists with important infor-
mation about the behaviour of
nuclear 'reactor cores.

I f\X‘

t,-

Tracking vertical changes

AN INSTRUMENT balled
Dektaic 2 -made by Sloan Tech-
nology in toe U.Si land available .
in . toe UK from Ferrox of
Botley, Oxford, -cur. track- the
very small vertical changes hi/'
a horizontal surface- down to 19.
nanometres ; and up -.to: 65/5
microns.. *;

The .: resolution : .'of the-;
measure menti • is .said to be phe
nanometre, which is only A lew '
atomic diameters. ;.

. Applications . :aie' : i YL; r such :
■areas as evaporated film sur-

face characteristics,, sputtered or
chemically deposited films, the
dimensional' ; properties of
etched patterns and photoresist
taaskis, .the flatness of masks,
..arid other profUfes such as thick
film . hybrid cireui ts.

The., machine is. instructed via
. a - serpen, and^the resu Its - ako
appear! there, Orion a printer.

'; Once toV-saircpIe . is positioned
»/, single, p’tafy.idepyession lowers
a stylus/; on to 4he surface and
Starts, the.- scan./iThe profile is
produced, sri under one minute..
More on 0865 >27217.

j» fc - j-c 1 si

»' V*»"V /w .**-*&' - y a

Easy to useMetaspec
for analysing alloys

NO SPECIAL skills are needed,
to analyse a widerange of fer-
rous and ' non-ferrous metals
using a robust portable brief-
case-sized equipment put on the
market by Specoptic (UK), of
Ash Vale, Aldershot Hants.

Known as Metaspec, the unit
employs a hand-held urilt which
generates are arc between a
two point electrode contact and
the melal under test

The light from ibearo tjiua
generated is analysed-to detect
the spectral lines of the de-

merits in the alloy. The unit
identifies the elements by com-
paring. the recorded factors
against, data previously stored
in itk memory.' 'Ifoeresults are
displayed and printed within. *
few seconds.

Pit

Up to 150 named alloy comp*
sltions are held In the Metaspee
memory^and a further 25 can be
added by the user. Price ranges
from £7,000 to £9.000, depending
upon specification* Mora
0252 5U71V . •

V;-

"*** u

Finsuicial . Tmies- Friday June- II 1982

3;

* : - 5 ?^S *3 |i

) lper ati| L
,Ca tOf S

m\

res

)re

- fi. 40-7.55 am Open- University
(uJif." onl/), 105 For Schools,-
COTte€es. llvt0 ^ewi ‘After Noon. "
1.27 . 1 Regional . Ne.ws. . (except
London). l’JO Heads and 'l'aUs. :
2.02 For Schools* Colleges. 222-
Tffl3ffls: Stella Artois Grass _Court :
■Championships' from . Queers
Club; Loudon. 353 Regional News

(except ; -London}; Gtt , ;PIay;

. Sch ool. ,420 ;B6g.vr -MO ,
Newfiroiind - Extra: f- 450 - The. ;
Adventure Game.

5.40 News- . .'!•

6.00 .Regional News' Magazine..

• 0.25 .Narlosrwtdfe.'^ -7 '

.7.00- Are, You Being Served? ■*
; r. Starting -MoUie Sugden, r
■ John . Irtmar L -f"

'720 .Odd- One Out/ a" contest
. with Paul Daniels. "■ ;
AtiO Ifs A Rnnckoul-;.

.820' Poiats ‘ .ttf -- Vi*w; ; L ■ -
. ttOO News. -■ J •> : . C ' - . i ' .

• 025' ‘World ' -Cup ' ^a: Ah \
' - analysis afplaying eon; '

. V ; -&Itioas and ..the British
v. . preparations;

10.15 Leap ixC thi Dark (London
• - ■ apd 'sbutB-bast only}."’ '
10.4S News- -t r
10-SOMcCI aid's L aw » starring
’ . .' 'James Arnees.
tlL40 The tale Film: “ Gas-
light.” . • '

/ - . * v

All IBA "regions as London except
at (he following times:— ■

I . ANGLIA

I 1.30 pni/Anofi*: Naws. 3,50 Hands.
8.00 About Anglli. 11.45 Friday- lata

f ilm. - 1.10 am Main morph os i*.

BORDER

1.20 pm Border News. 3. BO Make
Mine Music. :8.00 Looks round- Friday.
B.30 The Rest World -.11-45 Danger
juXB. 12.45 Border News Summary.

■ CENTRAL

1.20 - pin Central*. News. - 4.15 Road
Runner. 6. DO Central News. 11.45
Central News. 11.50 5oap. 12.20 am
Portrait of a Legend. ..

CHANNEL

120 pm Channel- News. 3.60
Survival, . 5.15 EnimelrdBla Farm. 6.00

(6) Stereo broadcast whan broadcast
on VHF

v; RADIO 1

'J 5.00 am Ay Radio 2. 7.00 Mike Read. -
? 8.00 Simon Bates. 1150 Davs Lae

S Travia. 2.00 pm Stave Wnght. 5.45
| Roundtable. 7.00 Andy Peebles. 10.00
The Friday Rock Show.(S).

• V . • RADIO 2

.5,00 am Steve Jones (S).‘ 720" Terry
• Wop an, (S). 10,00 Jimmy Young (S). .
12.00 Gloria Hunmlord. (SJ. 2.00 pm
Ed Stawart (SJ. 4.00 David Hamilton
- (S). 546 Naws: Sport, 6.00 John
Dunn <S). 850 Take Your . Partner*
IS). 8.45'Triday Night Is Music Night
(S). 9.56 Sports Desk.. 1050 Roy
Castle. 1030 Alistair : Cooke. " 11.00
Brian Matthew; 1.00 am; Night Owls
.. (S). 2.00 Star Ware (SJ. 227-5.00
.You end the Nfght and thp Music (S),

TELEVISION

-■ Chris- Dunkley : T onight’s Choic&

... One of .the prices of growing- .up is the loss of that fiair-
crayriing terrof which a- really good thriller can induce in the
young. -I reoaendfey ,-thfe -tost time I ever came across Patrick
HamJIton’srplaj-' “Gas Light” (set in Victorian Pimlico but
Dteitten; I am. surprised to learn, as late as 1938} being gripped
and iCrrifiettr-Wid "this; despite . the fact ' that for its most
frightehflTg moments Jhe play depends lipon'a lighting effect and
I: was listen Lngrto^ohthe wireless; ' _

-la 1939/-194Q .Thorold Dickinson directed a 51m version called
GagUgfit for- British- National with Anton- Waibrook playing the
villainous half-maid 'husband, and Diana. Wynyard bis wife. BBC 1
Screens it very J ate.' It is. of course, black and white, which is
one of its -strengths, /and it comes ^from 1 the! heyday -of tbe British
cinema. Leslie HaUlwell, who'TJaa for years been chief movie
buyer for. -the ITV: 'network,, even- lists . Gaslight.. in his unique' -
reference . book “The- Filmgoer’s .Companion” 'as one of his
hundred favourite films. l'm.riot sur* EVgo that Far; but it is
certainly one of the -best ^things picklDson ever did and I shall
be amazed if anything else television- tonight comes anywhere
■near it for Style and- drama.'/ • -

6.46. Open Univei^sity. . ?

1Q20 Play School. ;•

1055 Cricket:. -. First Te(

England y India.

125 pm Cricket; and Tennis/
6.40 News. - ■ ;

. v; V ■'6.45' The Mystery of Elchc.

. 325 Gardeners' World.

Playhouse. . /

1020 It r s My Pleasure,
v “y :1055 Newsnight.
cdB' 1125 Cricket: First Test high-
•• . ’ _ lig^its;

Channal Report." 6.35 Spld'arnun. 10.43
Channel Late New*. 11.45 Vegas.
12.40 am News In French..

- GRAMPIAN ;•

-120 pm North News. 3.50 -Panama.
B.OO North Ton igfn. 625 World Cup-
Preview. ' 11.45 -Streets of Sen Fran-
cisco 12.45 am North Hudlinu.

GRANADA

1.20 pm Granada Reports .120.
Exchanga Flags'. 6.00 WKRP in Clncin-.
natl. 620 Granada Reports. 1120 ■
There’s Nothing- to Worry About. 12.00
The Late Film, .. ■

1 # fm

- HTV • r

.1.20 pm HTV News. 6.00 HTV New.
6-20 So What'e Your • Problem? 10.53
HTV Nhwc. 11.45 ' The "Monte. Carlo
Show/ ■" >" . I ’

- -HTV1 Cymru/Wa las — As HTV. West
except S.SO-IO.m pm Mwy. ,Nau. Lai.

RADIO

. RADIO 3

6.55 am Waithat; "7.00 News. 7.05
Morning "Concert (SJ. 8.00 News. 8.05
Morning' Concert • .(contmuad). 9-00
News. 9.06 - This" Week's - Composer:
Vivaldi (S); 10.00 British and American
MubiC Concert (S>. 1035 "Songs and
-Romances (S). . ; =1l-30 Clarinet end
Piano Racltel - (S)i-. 12.10 pm Chicago
Symphony Orchestra (SJ. 1.00 News.
1.05 Chlmigo Symphony Orchestra (S).

1.45 Bach, Nielsen. and Stravinsky (S).

2.45 Berlin Philharmonic O.rcheatrB.(S).
4.00 Choral Evensong. (SJ. 425 News.
5.00" Mafniy For Pleasure (SJ. B2D
Music for Guiur (SJ. 7.00. The
Romance of the. Rose: The celebrated
medieval poem. In a modem versa trans-
lation. (SJ. . 720 ; . London Sinlonietta

Copland. Henris Euler (SJ. 8.10 A
Mozart Pilgrimage: The travel diaries
of Vincent and Mary Novello for
1829 (5). 8.30 Concert: Detfev Mufier-
Siemena, Copland (5). 9.10 The Myth
of " Central Control. 920 BBC Northern
Symphony Orchasnra [SJ. 10.00 Schiitz
Choral Muiic (SJ. TT.15-11.18 News.

10.55 am-8.30 pm: First Test. England
v - India, medium wave only.

RADIO .4

6.00 am News Briefing. 6.10 Farming .
Today. 620 Today. 8.33 Yesterday in
Parliament. 9A0 News. 9.05 Desert
Island ' Dues. 9.45 A Sideways Look
At ... by Anthony Smith. 10JM News.
10.012 'International- Assignment. 1020
Daily Service. 10.45 Morning Story.
11;00 News. 11.03 FJshtng For Hope.

LONDON

925 dm Schools Program roes.
1122 Tlw- Return of ilic QE2.
1220 Sudden Change. 1.00 News
plus FT Index. 1.20 Thames
News. 120 £bovr Britain. 2.00
After Nqod Plus presented by
Elaine Grand. 225 Racing from
Sandown Park. 3.50 Wild. Wild
World of Animals: “The Golden
Eagle." 420 Dance- Crazy, ,4.45
Freetime.- with Mick Rdbcnson.
5.15 Film. - Fun • wJU> Derek
Griffiths. .

5.45 News.

6.00 The 6 O'Clock Show with
Shaw Taylor, Janet Street-
Porter and Fred Housego.

7.00 Winner Takes All with
Jimmy. Tarbuck.

720 Goliath;- Awaits.

9.00 On the Line. (

10.00 News. ‘ *

‘10.45 World- Cup .’S3 Preview.
11.45 Dolly ■ ; starring, Dolly
Paxton... ' '

:t£i.I5 am Rawhide starring Clint
Eastwood.

1-15 Sit Up and Listen with'
Para Gems. .

•f Indicates programme .in. black
.and while.

12.00-12.10 pm Bath Am Stori? 4.20-
4.45 Y. Gacynen Gymwynasgar 5.00
Y Dydd. 6.15 Report Wales. 620-7.00
.. Outlook.

•: scomsy"

. .120 pm Scottish News. . 3.50 Th'a
. Flying Kiwi. 5.T5 Private Seniemin.
'63)0 Scotland Today. -6.30 World Cup
Preview. 10.45 Ways and , Means.
11.16 Late Call. 1120 Thrillei: Murder
In Mind.'

"~J. 20 TSW News. 3.50 Survival. 5.15
Emme'rdaia Farm. 6.00 Today South-
West: 620 What’s Ahead. 10.47 TSW
News. 11.45 -Vegas. 12.25 am Post-
script.

. T 2D pm TVS News. 3.50 The Cuckoo
Waltz. 5.15 Q'deon Mum. 620 Friday"

FT COMMERCIAI LAW REPORTS

No sale to non-existnt Saudi corporation

'• SAID PRINCE

A " " "

Queen's Bench Division (Adrairal Churl): Mr Justice- Sheen: May 2S 1982

THE OWNER of-:, a ship . that Mr Orri selected the n 116 ®
arrested in connection wtb * of his various’ cDmpanieF»no
an action for damage -to. cargo, business natnes for the jrposc
on a sister ship, cannot assert of obnubilation [obscurai”J-
that he owns the arrested J" . 19 ' 6 a cargo of
ship in that be sold it to a SL e n s -i u J v er S d «^? se *f^?j£
company before the- date on b> '

-which the writ in the -action August 1979 Saudi Pri-e ca «n e
was issued, if the company at wit ^ in the C0lirPg ^ction. It
that date was not yet a legal - appeared ..f ronr . tb< Lloyd s
entity capable of owntafi Register of Shipi^irg at il ^
property under the law of- its - own ed by SEL. Accr JlB Sly. on
country of* incorporation. August 24 1979," a w * n r ? 7n

Applying those principles, Mr . W as issued hy virti. of section
Justice Sheen refused to. set 3(4) of the Admi stra S io . n
aside a writ in rem and sub-, justice Act 1956 Saudi
sequent proceedings against an prince was arresb-
arrested ship, the Saudi Prince. The owner nowiUfiht-Jn have
The writ was issued by owners. ^ wr j L set .'it was not
of cargo carried oh another ship, disputed that "jr January' 1979
the Ai Dahran, owned hy Mr g^di print-e w; ovwied by Mr
Muharumed Abdul-Kahman Orri. Urri iiuwever® asserted that
in order to, invoke the court's pn y !iV 30 187g iefore the issue
Admiralty jurisdiction to Iwar ' of the" writ, 'ov^rsliip had been
their claim far damage to cargo u-ansferrod to hipping and Sea
carried on the AI Daiirxm. . ■ Transport C Ltd (S$ST),

* * * , . a company incorporated in

Section 3i£) of the AdmLoistra- jpddah, in ->«ch he owned SO
tjon' of Justice Act 1956 pro- ce „ t shares, and his
vides: “In the case of any . v rf; ildren 2oer reIrt .
claim arising in eonnecUon with Mr Wow d t for the owner-,
a ship, where" the person who intended "iat if that change of
would be- liable on the claim in owneriti ir was established, it
an action i« personam was, when fpn^edjal. on the relevant
the cause of action arose, tbe . , Sad Prince was owned by
owner ... of the ship, the gggj, hoi by Mr Orri. He
Admiralty jurisdiction of- the e „nasis on the compleie
High. Court.. . . may . . be in-- separal n of the legal entity,
voked by an action in rem cecr bhi jts shareholders.

against — (a) that ship" or (b) a • 1 . ..

any olher ship which, at the time Mr. ,a * on * on - D * e cargo-
when the action is brought, is owne- - sul>m ' t . ,e , tl 1 ™*J* “
beneficially owned [by that iuatt- of Saudi law, SSST was

Sporuhuw 11.45 -Film: " Revenge . “
125 am Company."

TYNE TEES -

120. pm Nanfi.East News 3.50 Pasi
Masters. 6.00 North East News. ,6.02
Sporunme. 620 Northern Life. 10.30
North foai Naws. 10.5 7 Friday -Uvo.
12.15 am Superstar Profile. . 12.45
Poei^a Corner,

ULSTER

120 pm Lunchtime. 3.50 ■ Untamed.
World. -4.18 Ulster News. 5.15 Mile-
stones or Millstones. 520 Heir Here:
6.00 Goad .Evening Ulster. . 11-45
Church Report. 12.15 . am Witness.
1220 News.

YORKSHIRE

120pm Calendar News. 320 By-
gones. 6.00 Calendar (Emley Modr and
Belmont editions). 620 Past Masters.
11.45 Mennix. 1

person

DOt legal entity when the writ
-way issued, that Mr Orri
i-Mijned beneficial ' owner

HIS LORDSHIP said that Mr reined beneficial owner
Om was an Arabian business- ih^S^ 0111 Lhe relevent tune,
man who owned a large number 3r** ia i’® ven Ihe property in
oF ships. He had two centres of . S‘^i Fruice had been tran^
operation, Piraeus and Jeddah. f re ^f t0 SSST. the court should
He carried on business through *U e corporate veil, behind
limited liability companies, oc Inch was the fate of Mr Orn.
by using, quite indiscriminately, His Lordship was not satisfied,
one of his registered business the basis of Mr Orris wholly
names, including Saudi Eorope unconv ^n cin S evidence, that
Line (SEL). There was no doubi ownership “of Saudi Prince was

William Woodard looks at Lowestoft's
fishing industry. - 11.48 Bird of the
Week: The white throat. 1200 News.
12.02 pm You and Yours. 12-27 My
Music (5). 1.00 The World AS One.

I. 40 The Archers. 2.00 News. 2.02
Woman's Hour. 3.00 News. 3.02 After-
noon Theatre. 4.00 News. 4.02 Norfolk-
Pastu-qs- An agricultural view from
David Richardson. 4.10 Asian Links:
Asians in Britain discuss links with
their native countries. 4.40 Story. Tima.

5.00 PM: News Magazine. 6.00 News,
including -Financial Report. 620 Going
Places. 7.00. News 7-05 The Archers.
720 Pick ol the Week (S). 8.10 Pro-
file. 8.30 Any- Questions 7 9.15 Letter
From America. 9.30 Kaleidoscope.

10.00 The World Tonight . 10.35 Week
Ending (S). 11.00 A Book At Bedtime.

II. 15 The Financial World Tonight.
11.30 Today in Parliament. 11.45 John
Ebdon with recordings from the BBC
Sound Archives. 12.00 News.

RACING

BY DCfalNIC WIGAN

IT IS Foodhrokers race *y
again at Sandoyra today. .

I TV cameras will be the? to
televise the Foodbroker of
Esher Handicap as well apvell-
endowed races for the ^Inia
Confectionery Maiden takes
and the Tic Tac Sweets handi-
cap.

Aperitive and Lester isfiott
will be a popular cb*^ for
many betting on the itoome
of the Foodhrokers- indicap.

Aperitivo just got ho®, under
Piggott's strongest stving in
front of a big even® frowd

here last summer. He was back
in the winner’s enclosure follow-
ing the Sunley-spunsorcd San-
down Cup this. April. However,
since achieving that victory, his
second 10-furlung success on the
course, Aperitivo has^ proved
something of an unreliable per-
former. He produced poor
efforts at Lingfldd and Good-
wood, coming on either side of
a bold display against Castle
Keep In the Clive Graham
Stakes.

The Robert Armstrong colt
must be respected now that he
is back on his favourite course
and running over the trip he
has found to .his liking here.
But I would not care to take
cramped odds about him dispos-
ing of a field -which includes

ever transferred "4o SSST.

Two questions arose which
had to.be answered by reference
to Saudi law: was SSST lawfully
constituted by August 24 1979:
and had SSST duly completed
the legal registration require-
ments fo.r a vessel so as to
possess complete and indefea-
sible title" by August 24 1979 ?

After hearing the evidenee,-
his Lordship .found that the
process of forming a Saudi
Arabian limited liability com-
■panv could be summarised under
three headings:

1 — Articles of " Association of
‘the company must be executed

by" the parlies. ‘thereto" before u
Saudi notary public. Once
executed, the articles were
recorded by the" notary in a
special memorandum kept for
such -purpose at the Ministry of
Justice.

2 — Following .the. payment or
transfer of capital (either cash
or in kind) to the company by
the shareholders, the company
rnust apply for and ootain com-
mercial registration in the
companies and commercial
register at the appropriate
branch of the. Ministry. of Com-
merce in accordance with the
Commercial Register law.

(3) Tbe articles of association,
as recorded, must then actually
be published in . the Official
Gazette, a weekly publication
which was the official journuV of
record in the Kingdom of Saudi
Arabia.

Publication of the articles of
association in the Official Gazette
■ was the moment at which the
corporation achieved its legaj
existence as a separate entity.
Before then the corporators
might have rights against each
other arising out of their agree-
ment to incorporate the com-
pany, but the company as such
had no legal existence vis-ti-rus
third parties.

Without separate juridical

Beekhampton's Beityknowes.
She was a tough and consistent
handicapper last season and will
he ready to show a good return
to the fray, judging by recent
examples from' her stable.

I will not look beyond Golden
Green for the afternoon's most
valuable event, the Alington
Stakes. James Bothell's colt was
highly tried as a juvenile on
two occasions. He opened his
account in impressive style al
Bath towards the end of last
month when justifying market
position in a field of 19 for the
Milbourne Stakes. Golden
Green needed to be only pushed
out gently to lift the Slakes,
at the chief expense of Princes
Virginia.

Fair Heroine. Navarino Bay's

personality, it was theoretically
impossible for such entity validly
to acquire and hold indefeasible
title to property such as a ship,
as well as to register ownership
of such property in its name.

‘ The articles of association of
SSST were puhlishcd in the
Official Gazette on September 25
3979.

It was not necessary to submit
a copy oT the articles in order to
apply for commercial registra-
tion.' SSST obtained commercial
registration on August S 1979.
but that did not excuse it from
the requirement thal the articles
must actually be published in
urder for it to obtain indepen-
dent legal personality.

Until the articles had bt-.cn
published in the Official Gazette.
SSST was no more than sin unin-
corporated association of
members who had agreed to form
a company. Accordingly, as f»t
-,he date cf the issue of the writ.
SSST was not a corporate entity
capable of holding an in*
defeasible title to Saudi Prince,
and SEL was still the beneficial
owner.

Even if that were wrong, ms
Lordship was satisfied on the
balance of probabilities, that the
children's 20 per cent of the
SSST shares were put in their
names by Mr Orri himself as hir
nominees merely to divest him.
self of shares in name only. H*
remained beneficial owner of
those shares.

On the evidence an invcsiiga-
tion inlu the true beneficial
ownership of Saudi Prince could
• only lead to one answer. Mr
Orri was at the material time
the true beneficial owner of Ihe
' ship. The motion " and appeal
should be dismissed.

For the owner of Saudi Prince:
Michael N. Hotrord f Thoimw
Cooper ami Stibbard i.

For the cargo-oicmers: TimotfiT
Salomon t Ingledeics ).

By Rachel Davies

Barrister

Ayr conqueror, has scared away
ail but four opponents at today's
other meeting at York for the
University of Yprk Turf Club
Stakes. Eastform can keep the
Guy Fawkes Prize in Yorkshire
hy accounting for the Arundel
raider Arago.

SANDOWN

2.(10 — La Re.ine Rose*

2.30 — Aperitivo

3.05 — At ossa

3.35 — Guest Speaker

4.10 — Golden Green 4 *"

4.45 — Anlecc 4 *

YORK

2.15 — Havoc

2.45 — Fair Heroine

3.15 — Lam lash

3.45 — Eastform

4.15 — BoukajT

4.45— High Old Time

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JL 2

Block diagram of Electronic Skid Control Module

The new auto skid control
with Doppler radar

in designing their new skid
control system, Hitachi and
Nissan engineers first analyzed
the physics of skidding and
braking. A skid occurs when
wheel speed is substantially
lower tie: lock-upi tnan vehicle
speed in braking, wheel speed
always decreases prior to
vehicle speed.

Normally, the difference
between wheel speed and
vehicle speed can be predicted
fairly accurately, in fact,
"conventional skid control
systems respond ro a skid by
sensing only wheel speed, then
pumping the Drakes at a steady
rate, assuming vehicle speed
will decrease accordingly.

But problems occur when
conditions aren't as predicted.

An icy road surface or a bald
tyre will increase the lag between
wheel speed and vehicle speed.
And as that lag grows, so does
your chance of skidding.

Tins new skid control system
uses a Doppler radar to solve
that problem. By beaming
microwave signals at the road
surface then interpreting the
frequencies at which they
‘bounce* back. Its able to ac-
curately measure vehicle speed.

so In the case of the icy road
surface, the new skid control
system would automatically
increase braking force and
frequency to maintain control.

mA

> -*V

m

m

wm

*>■

v

\

In'*

K : drivers and pedestrians alike.

Imagine that you're driving your car when suddenly - \
another Vehicle putis out directly, into your path. You.step ;
on : .your brakes hard bCrt your wheels lock and your car
begins to sKict . .

With a coriverrtionai, auto skid control system, a wheel *
speed sensor wouid sigrrai that condition to an on-board-,
computer. It' in turn, would automatically begin ’pumping'
your brakeseto preventskidding.

How oftenj and how strongfy.it pumps them, is based

on the predicted relationsto between wheel speed and
vehicle speed. A predictiorvhst often fails to take into
account icy or wet road cndltions or worn tyres.

. The new Hitachi Auto. S«* Control system was specially
.designed to solve that publenv Developed Jointly with v
Nissan, it not bnly uses awheel speed sensor but a
Doppler radar to dkeetcrue vehicle speed, So automatic
braking becomes mucfcmore effective and accurate.

As proud as Hitachi j in developing the Auto skid
control its just one eample of their commitment to
Improving the qualifrof life through. technology. Right
now Hitachi researc‘and development technicians are

working pn hundreds of other promising projects, from
full-scale water purification plants to solar energy systems.

You see, Hitachi is doing some pretty straight thinking
about tomorrow. :*

0 HITACHI

A world Leader in Technology

a

and , computers do Danone, Evian. Kronenburg and radic^ no0 vationa twice in sue- had been moving into flat glass
uol feature on Antony Pilking- other familiar brands. ' cession- a trick mastered only manufacture in a wide range of

ran 3 shopping hst. That makes It was the obvious delight by a \ TO ured few, such as new territories, mostly in the
onn me odd. man out axuong with which Pilkington acquired Kodak yj jb&L British Empire birt also in

. Europe s leading glassmakers. BSN’s 62 per cent stake in ■ It is feinst this background Sweden and Venezuela,' ,

tie says he and his board “have Flachglas for the princely sura that, wfflp the confines of his Within the flat class busness

h3lf cammed home a St. Helenl^arte^on 1 Sve its

senously of moving into any- less evident but equally sigm- fringe ofc ersey5id e, Antony taking it into tinted windows
SHi 25? and flea nt message about the British Pilkingtorihas been heard to ifehT senst&re panes, and

alhed products, in spite of company's strategy, that this profess: ^ don’t understand trarions tiroes of dusakrtinf?
growing competition in what pioneer of high technology has technology.) vkiss. EntC-

: RJJLSfElf ar5ue “ a m3ture fina,I - v accepred that its ** 80 ort^sation. where, in Edbaan daanpened--and have

industry. The pressure is coming tisis and engineers cannot hqpe contrast wit&be British norm, mn rimied m be hv a irelaaaveJv
thI"ti a ?J? , ff7 S ft* globe: to maintain the remarkable technical Pledge commands unad^m^c^^SmSton^
the United States. Japan and — record of the past 11 years, as much resi% a t all levels of *i«sfrv and a deeidefflv «aW
m third world markets durum which it, know-how has management^ iV best SfSrf on

pelves - from dewtopin, um'd nearly an much in German, SweL Japa^S

countries, royalties as the sale of glass company. be Slid hate to be ducts hare enjpyed nS

If you are technologically itself, taken lUeraUy.VHe is merely Sr^oVS sS

excellent you win maintain. This may seem . a perverse underlining • tii ' under his

your position in jttut chosen decision to make at a time leadership. PiUOrton Brothers STS JSSS - wSr pSZ
■markeL" says this tall, elegant: when companies throughout the “i S shiftinglpo of . its Jet to a^iew^fant toSwSim
./shghtly retiring .46-year^d. western world are being coun- emphasis from Thnology. to ^ the t

..■Glass 'is not as narrow a field «Hed to outflank the competi-' the ■ marketplace.”^ the words SicSsrSo sen v£n

.as some people imagine" five threat or Japan and the of someone tjartmUy dose to SnrlrSiofS

At n ame of unprecedented ttiird world by moving out of the company T ? Querter of

depression in his company's mature industries and into the This does nOt mei that tech- Ix^^rfasTtorStance

home market, his strategy of provision of high-technology nolo®- will be tbrL out of ^“ amng siass ’ lor * ns * ance -

extensive geographic riive’rsifi- know-how. the window: the & U p con- '

cation over the past three Years But il comc,s after the com- tinues to spend heavy 0 n im- Pnncfroinail
in West Germany. Brazil' and mercia l failure, or only partial proving the quality \ d p^t. rtuICTlA

. Taiwan has certainJv helped success. of several expensively- effectiveness, at gtassU nu fac- ; ‘ ~

bolster die group in ‘the short developed new PV1 king ton pro- tyre, arid also has hi! hones In: oH other, respects. FfMng-

... r 1 . . : . u:«i — . __ . • ■ : ■ 1™<™*' Icm h,, Aliuato- KauM.iwnctwAidi)

bolster die group in ‘the short developed new Pil king ton pro- tyre, arid also has biS* hopes ’ aH other, respects. PTlMn g-
term. The main source of ducts, including a high-strength for various new ; pro dpt de* ' r°° hasalways beep roturir aaieq
-support, has been the profit- - * r windscreen and a glass fibre yelopments: for examfc ■ from- drrerstfcatrofl wrtf»n..tne
ability of .Flachglas. the new reinforcement for cement. • new “ Kappafloat ” instating'- : ^ ■****: martet by its

German subsidiary who^e Fcw company executives -lass. its optical fibres, an pn> danrinant position. Untfl a flood
acquisition two years ago this - wou ? d now .admit .to baring ducts which use lasers foi\edi- ! amitfrts. sapped its. market

setting the losses whicb th* world-beating “float” process technology insulating gla^ it felt unable to seize the bfg-

■ Stilish- ^crimM^y • has-been tor making flat glass has earned . plus pieties.* . ' ■ ' \:St* . singfle ffiveretfication

makiiuj in its home marter e ^ h - VMr since the ' lare 19B0s - .'But vith' his many years \ opportunity which i-ts flat glass

■ But they were trumpeted noisHy experience on -the - 'markPijA business theoretically 1 offered: a

/~i ■ .4- ' • | . in the early 1970s. arid their side of' the" business. An tom move deep into processtog. h>

1^0aSrr0Vi?rS3aS performance has certainly been Pilidnglon cerfainly sees th\ chiding window mamifacPare.
■ • an increasingly bitter disap- company as being- rather lesaAny such move wptjld stfll ran

■ .As. a long-term proposition, norntment ss Uie 39S4 expiry teThnologically-d riven than didW against monopoly (jontrdls.
however, Pilkingtons strategy date for most . of the float his predecessor, Sir Alastairt Only about' 20- per cent of tfie
!f,„„?° ntr M V i u ■ 0H , ® everal licences has drawn nearer. Pilkington. who retired ra 1980 iitput of its five UK float glass

obyiousl y. it con- .Today's announcement of after' a brilliant engineering sees to oH3wr parts of tlm
SSf ^ is expected to repon career which Rad" included Vhpany rfor processing, with

being followed since the late Pclkmgton’s annual results for leadership of the team which \ Triplex motor vefoide safety
S . S , 1 . Gobain - v/hai will prove a peak level of developed the float prbeess. ^s subsidiary the- major
-hjcn until the Socialists came- float royalties: they will soon “I agree with the chainman Cnomer. So four-fifths 6s so4d
^ been be ^ n to tail away. that we haven’t been good v*he open markrt. By con-

nLr fr r ! c man ' n f?” e of ,he ; lesson s that enough at our marketing," says trd erver half the Flachglas

r a /nc ^conglomerate- Pilkington has learned rn the. Dr Dennis Oliver, the board prlcoion is processed in-
P astf ^y^sis that iris much member responsible for research HL and otfier. continental
^^Pment and move difficult jo push through and development -‘We must’ nwt sharp a stiaHar pattern,
C °?™ n ««« k a major product innovation, become number one in market- ' thaiV to their past obBity to

r< £.® a ™!o 1 Bf^ t ^E e h f as m ee , a where success . depends on ing. a s we are in technology." iru^te' forward into glass pro-
■ u A u acceptance by a myriad of cus- By the time Sir Alastair took' ductl t the expense of their
Tor 1 fhi aS ^ n I« l ^t StS ’* V '!i! C ^ has tomers ’ tban , Il . ls to launch a ova- the chairmanship in 1973, owntnebant customers,
set the seal on its ufeady trans- new manufacturing process, PHkington had alreadv begun In ta* vttnatiwi most nf

SsS f ^rain tn?o d L y " b fnn!f Ihe . ‘ nn ovatin? company diversifying rapidly, both into PlMiw s product fflveraffi<2

industrial - O roup into a food, can provide its own initial new geographic markets and tkra W had to take olace out-
dn i lk .l nd w bonles TV** 1 * ^f^Place. It is also difficult into new pTSucts. S SS?tsS£^SSe^

under the banners of Gervais. to proauce world-beating and Geographically, the compgmy basic H^hess. jn ; other wortfi

PRESERVED PENSIONS? \

with an the risks that tits
entails.

In ihe 1950s and 1960s, many
of the moves were opportunistic,
such as shortlived forays into '■
tableware and test tabes.

. Since then, however, most of
the moves have been under-
pinned by a logical strategy.

The expensively developed
Ten Twenty car windscreen fell
in the wake of the energy crisis
at the double hurdle of. a deci-
mated domestic motor industry
and tough Continental competi-
tion with alternative products:
(from Flachglas m particular)..
The development work has,
however, given Pilkington “an
enormous, depth of knowledge ”
about the key- technology of
toughening thin glass, says Dr
Oliver.

Apart from that, product
diversification has been concen-
trated, in ’two main areas: glass '
fibre and optical- products.' The.
latter is now thought to be the
fastest-growing part of Pilking-
ton’s business.

In glass fibre, where the hi'
sulation business has recently .
.been hit by changes in govern-
ment subsidies for energy con-
servation, . most .of the ; develop-
ment has been internal- The
■ mam project has . been Cemfil,
.which is now taking off be-
latedly in direct sales - as a con-
struction cladding material —
especially as a replacement for
asbestos — but which, has gener-
ated little royalty income. There’
is also a new range of fibre-
reinforced plastic for use in the
motor industiy. -.

Together with continued work-
on refining glass production —
particularly on energy-saving
r — the sort of kmg-cycle develop^
merits now . under way in'
Pilkington’s electro -.optical
division (see inset) provide a
continued “technology push” to
augment the company's new
emphasis on marketing. But
Pilkington's days as one of the
world’s leading licensors- -.of
technological knowhow are
coming to an end, for the
moment at least its new
emphasis is on making a direct
match between products and
markets.

f A three-part examination
of the -post-takeover integration
process between Pilkington and
Flachglas . ■ was . published . on
March 12, IS and 19. . . - - ,

A Chieftain main bstti* tank refected in tb* gawemhua tent of athwiBl imaging system manufacture*

by. Barr & Stroud, a Ntongton company ■

An eye on the long-term future

PILKINGTON’S long-estab-
flshed optical equipment bust- -
ness, under . the “'Chance ** 1
name, was initially expanded
by joint v enture s and inter-
nal developments, One ofjhe
most costly was the inauafac-'
tore of TV tubes: after only 7 '
seven; years of life an £Um 4
operation had to be closed in
1975 in the' tape of surging
Japanese., Imports -anqjuL a
domestic recessfoh-

The development ' of sun-
light-sensitive “Readout e ”

sp^tades has been -more
successful — notably in Japan -
— though thin is 'a -highly com-
petitive marketplace and the
busings is not large by Pflk-
ington standards. - ^

' - Slnefr - thq mid-I970s^ the-' -
Mfliii divers tfieatitra thrust of
the optical business has been
on the acquisition of techno-'
logy-strong “ downstream **
businesses: unlike many other
proud techi logy companies, -
POMngton seems able to sur-
mount the notorious psycholo-
gical barrier of “ not invented
here,” at least outside the
flout process itself.

Two of 1 the key purchases
were made in 1977 and 1978,
respectively Barr std Strand,
a UK maker of periscopes and
other predsibn defence pro-,
duets, and SOLA, an Austro-

Rail-based maker of plastic
op hthalmic lenses.

A -central plank of the
original strategy collapsed In
1977 when a Md for . UK
Optical,. the dominant British
supplier *of spectacle frames
and glass lenses^ was blocked
by the Monopolies Commis-
sion. ' But this failure, may ;
tarn out to have a silver
itnJng f since an nnezperiedly
sharp rise .. In . consumer
demand for .plastic lenses has
since hit UKO lrardr-4o the
benefit, among others, ef
SOLA. . Within the past, two .
years PiBdngton has also
established a link with an
American .contact fens com-
pany.

-Such has been the growth
•of the' optical ^business 7 in tiie
past few years that it has just .
been decided 7 to split it into
two. divisions, ophtiudmic and
electro-optical; in 1980-81 each
ta - fiumght to- have . had.
revenues of over: £30m.

Electroqyptics, whidirepoxts-
lo Dr Oliver, expanded by '
over a third in 1981-82, and it
win grow ftpt this year as
weQ, he forecasts. This owes
. something to several more
. acquisitions, but is also attri-
iratabie to the coming-good of •
a whole range of nUHtaiy and
-commercial -products. -•

Pilkington - also has goad
hopes for optical fibres
designed particularly for me
over abort distances. This
technology was developed
in ternally , on the basis -of HI
American -acadexufe InventiOa,
and takes: POfcingten Into: a
dflfer mit market segment than
the world’s majors In optical
fibres, Corning, Western Elec-
tric, and the Japanese, tbopgi
£t could still face strong ‘com-
petition from British Telecom
among others. But together
with associated 'terminals and
equipment, optical fibres could
just become a big business for
PUkingtou, though like ' Cemfil
it fa a high risk one. . ■

Ihe company first began
work on fflne optics 15 years
ago. “That’s as far ahead as
you have, to start with new
technology, v stresses Dr
Oliver.:. Be points out that
Pflktogfcon fa sttil just as pre-
pared to commit itself to
ecpirify hmg-cycie develop-
ments, tntrii as integrated
optics” (which may provide
an - optical replacement for
. sffican ^ chips, - though the
electronics industry fa under-
..standaMy sceptical). . “Bread
on the water for 1995,” is how
Dr Oliver describes this spend-
ing. Waiting is the name of
the game in high technology.

fh© questions

slow.

Having problems with . . .

Pension preservation admin?

AH
40 Y!

QP.

...Fair pensions for
long-serv^g job leavers?

^sOE ^ 5

OrsayYl
totheNE
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Cinema

Nigel Andrews

Ch^ lDpoo A Time la The West
(AA> Empire

Mak ing lore (X) Glassies. Hay* ■
market :and Chelsea, Odeens
Senaaaghm and Swiss Plot-
tage, Studio . Oxford Street/.
Tomiirro^s' Warrior <AA) Gate
;CpTO«' -y ■■■ . ■; '• / •

Sei^io teatie's Onc&'U-parL A ;
Time in the ‘West, a j^eai san-
fefced ‘spaghetti -Westertu lin-’'

furls Sts wade-scseen.. spb^doar
OQia jetiHO -tee. West

EmL Soflow-^^ heranits or£ tfae
yidep-cassette age should < cat a- ;
•ppft liiemselvG& farfe from their.'
sitting • coooos to see wdrat mag
weti /be 'its-' last- fu41-&ereen >
appearance -io -a - eoatimereiai -

.cinem. : : '*•'/':•

: The movie isn’t obtainable on
video yet. But wOe rather than
• rejbtofcng •wheo/it is. Eor-flris is ;
fere* •-fifen*' ln"wfe?tat lopped edges ;
■!wB8>''be •a ’te^gic miitffetion. ;
Le6pe the Cinemascope,

-rafto— needy thrice as. long as
fesgb — wte' • i panoramas :.*nd '
human frescoes as tiwaiBng as a
Brueghel painting. Each comer
bursts and hristtes with detail' or
sweeps, tee eye into- an eloquent
vastaess. No director in tee
world today has handled the
wade screen, wife more bravura.

Italian Westerns were, pro-
fusely pilloried by tee Press on
their first appearance. .But tee '
public, teas time knowing better. *
flocked in droves; and Leone,
having shaken cash-registers
worldwide wite tee CSant East-
wood “DoB-ar” trilogy, next
engendered teas rich and. bril-
liantly convoluted f 60-minute
epic, based on a story conceived
by hamsatfand.Bernaxfo Berto-
lucci and Dario Argent* (of
Susprria).

its m Itsdian-Ameracan horse
opera for five principal yokes.
(AIL fear not, apeak English in
‘ teas version.). Henry Fonda Wil-
liamses in Zipuad-vaiced rasp as
tee - bit-man for a . railway corn- "•
pamy pushing West .Gabriele
Ferzela is the hoarse and bone-,
diseased railway boss, dankang
through ins private raiicar in
neck-vice and on crotches.
Claudaa. Cardinale tnoues and
memo-sopranos as tee widow of
a brutally murdered farmer
whose . land stood in tee rail
company's way. Charles Bronson
lends bis gravelly bass-baritone
and speak-your-weight chords to
“Haimpnica,” a mystery gum-
man hunting Fonda in pprsu-.
a-nce of am old grudge. And ■
Jason Bobards growls . toimuigi
vriM-and-wooiiy face-fungus as-
*■ Cheyenne,” the outlaw who
wobs Signorim C. and helps
Bronson fight tee baddies.

Scored by Ennio Morriconp —
Italy’s one-man film - music ■
Industry— for alternating desert
silences and sudden . scorched. 1
sforzcndos of string and percus-.
sion. the movie : is - .almost !
demen ted ly stylised. Squalls of .
ritualistic Western action— the

A Brueghel with bravura

Charles Bronson-ahd Henry Fonda in * Once upon a time in the West *

gunning-down ..of " Cardin ale’s directed this hygienic tale of qess of exchanging the foolish n °“, re

family, an ambush on a train, hbmophile ■, love between a stereotypes of gay life hitherto !?„*

•the climax, gunfight between ;ypung anaried doctor (AficbaeJ . enshrined in popular cinema for

Fonda and Bronson— explode in -.Outfcean) 'and a young gay foolish stereotypes all his very L> c Twvich

eyeblink editing; while ip- novehst (Harry Hamlinf. It own. f * Turtash

between Leone rakes his won:: . spools forth in an unmistakable
drous wide-angle lenses slowly soap-opera world' of immacu-
a cross the burnished majesty of lately-hoovered carpets; * anS
Monument Valley (never bet-, immaculately - shampooed
ter used even by John- Ford) or.. , emotions: somewhere in. Los

unmmafraoie ; The supporting .cast bravely
of Unmacu- waves and then bodly squanders
carpet^ ana Arthut Hill (as Jackson’s Dad)
shampooed and Wendy Hiller, tee purpose

The National Film Theatre is
always a haven of sanity in
such stressful times. Three

of whose role as an. old chum concurrent seasons, addressing

_ - ■ — , * , . a nix um wmui wuvui i cui o^doyiiOi aui ^ cjo iu x

tee bronzed and porous splen- Angeles ct. enmrons. Ontkean s ^ Qntkeans, forever woof- themselves to far-flung climes,
dour of giant close-ups of fafs vffe. played by Kate Jackson ^ f0T]d m6mOTi es through now hold sway. Sri Lanka’s
stam . ' . ‘ yS. * ner y for wardness that roart^hestnut cheeks, entirely Lester James Peries, a fine

Laconic emblematic dialogue for * moment as if it wiH eluded me. If this film ushers teller of humanist tales dunked
purls forth. (Rob arts to Terzeti; 15 , . . y in a new age of tolerance and in exotic melancholy, is

“You leave a stime behind- you, P^teapal onaracter you beneve understanding for hmnosexu- honoured with a full retrospeo-
tifr« s snail- Turn nMnv rails / m ' fiut *° e M satei 5' oaU-and- thp n all nnwer to its box- tive. Visintut of Inrfifl hnrls a

like a snail. Two Mny rails.”) ou j *° e » 8 *a«iy oaii-ana-
£e are doses of resplendent '

inA ^ ts^nbin® most of tte movie, apart from

and heady symbolism. (Smoking
guns and steaming trains are

m. out sue 18 sareiy oaii-aaa- -ttyi then all power to its box- tive. Visions of India hurts a
® er for office elbows. But it would be month of many-coloured movie,

most of tee movie, apart from sa( j t0 thick that it takes ballnncraations of the Subcon-
soroe flMnboyantly demented . smsHest-eomnTon-deoom- ttnent at us, encompassing such

tul Lj OJLIVa akCOlLUllc' uauio OXC , - . _ (l ,, , » OUkll - M » w

visually rhymed: -the raM-boss’s s°rii e s. into her career worm na t 0 r sentimentalism and re- diverse fair as Gimps Din, Block
name , is “Morton” — which r as an idealistic TV executive. stereotyping to effect rolt-coeur Narcissus, Stranglers of Bom -

Italian ears instantly rings as Elsewhere Hamlin . tee miracles in public opinion. boy and Carry On Up the
“death”.) And tee dual chore o- tempter and Ontkean tee ★ . • Khyber. And Australian cinema

graphy of character-movement temptee annex tee screen . per- Michael Papas’s Tomorrow’s un-coffers a decade of riches,
and camera-movement . is . so forming their meeting, courting Warrior, a rallytog-cry to Greek including the best of Peter Weir

tee miracles in public opinion.

bay and Carry On Up the
Khyber. And Australian cinema

ornate mid fugal — circling doll y-

Michaei Pap a s’ s Tomorrow’s un-coffers a decade of riches.
Warrior, a rallying-cry to Greek including the best of Peter Weir

mating- rituals— af] as patriotism in wear-tors Cyprus, f Picnic

Hanging Pock).

shots whose queazy physdcality chaste as toothpaste up to (and has more forceful methods of George Miller (Mad Max) and

•is exaggerated by sitetly,. revolv-
ing tee actor as well-teat you

can - hardly .watch, tee movie-
without holding onto your seat
and ‘your sense of equilibrium.
Seize on the film’s brief return
season at tee Empire to sample
a great Western in its fttil wall-
to-wall splendour.

★

including) .tee first mouth- to persuading you to its viewpoint
mouth kiss— and Barry. Sand- To wit: it engages you in an
ier's script goes about its busi- audio-visual habt-Neisc-n and

persuading you to its viewpoint Fred Schepisi (The Devil’s Play-
To wit: it engages you in an ground. The Chant of Jimmie
audio-visual habc-Nelsra and Blacksmith)..

Rainer Fassbinder

The news of Rainer Werner
Fassbinder's death marks the
end not so mute of a film-

oisie " and especially “ la
Presse. ” But .. as - an inno-
vative and formula -overturning
' Malting Love could dlip into maker as of a cinematic director he had no equal in

fee cosy context of video-view- phenomenon: a combined present-day cinema. • Recently

ing without losing a molecule industry and forre-of-nature . approached by the magazine
of impact Clip its screen edges who had completed over 30 Sight and Sound to submit my
and you ."would merely lose a feature films by tee tender age Ten Best Films of AH Time for
peripheral vase, a superfluous of 36 at which be teed. an international poll, I had

sofa, an otiose ottoman, as the “Tender” is not an epithet already earmarked Lola as one
humatf -furniture stays firmly tear reflk 'easily off tee tongue of the tot* ' -

marooned in middle-screen wife Fassbinder. “In public he Fassbinder’s daring as. an
spoqting \ -nriddlerof' -tee-road was a swaggerer and a bully, image-maker — wite colour,

Hollywood wisdom- .. ■ \ His undoubted motto at film lifting and tee most Lmagina-

Arthur (Lone Story.) Hiller festivals was “epater le bourge- tive frame-compositions since

tive frame-compositions since

Citizen Kane — wiH be cruelly
missed. So will bis superb
belligerence as a social critic,
combining comedy and melo-
drama in his films with brilliant
anatomisations of postwar Euro-
pean society.

He is one of the few movie
luminaries for whom one
doesn't have to dig deep to find
ready superlatives in the wake
of his death. Nor to find a
genuine sense of pain at tee-
loss of a great and irreplaceable
cinematic talent

Henry IV/Barbican Theatre

Michael Coveney

practically twists jour arnreff-

If Once Upon A Time In The
West was a well-seasoned
Spaghetti Western gariicked
with invention, this is a nums-
saka. melodrama heavily
sprinkled with Partisan cheese.
Papas follows tee fugitive for-
tunes of a Greek family "high-
tailing from their North Cypriot
village in j u st-ahead -efitee-
enemy advance of the thunder-
ing Turkish forces.

Pursued by shells and bullets
and explosions, tee family is
also harassed by a. vicious
small -arms bombardment . of
zooms and panning-shots and
jump-cuts, interspersed with
pauses for didactic dialogue and
wads of patriotic rhetoric.

The number of hairsbreadth
’scapes endured by tee con-
sanguineous group make the.
Road Runner (of cartoon fame)
seem slow-footed and fallible.
The only Greek character who
is more than a mouthpiece., for
propaganda on two- fast legs is
tee Grandfather, a painter of
beautiful naive paintings. And
since he is lost to us early on
— mortally bonked on the head
by a rifle — all we are left with*
is two hours of Hellenic scam-
pering and speechifying in a
film that comes perilously close
to enlisting new and enthusias-

RSC opens in
new London
Auditorium

One thing ! s for sure: every-
one is going to' have to find his
own way in and around,. up and
down.. the Barbican Centre- Our
music -critics have .already
cracked it, but on my third
visit to attend the RSCs official
baptism, of the theatre yester-
day, I felt for much of the
evening in sore need of a map.
compass and spirit level- Nor
would I have said no to a guide
dog.

The visitor Is greeted by acres
of orange carpet, more instruc-
tional arrows than in an airport
terminal, endless queues in the
buffet areas, odd unpopulated
corners, and a strangely . listless
army of cleaners, coffee vendors
and security guards.

■ Once safely esconced in the
theatre, however, everything
changes. “This jewel set in a
concrete sea,” as Trevor Nunn
describes it, is' probably the last,
and possibly the best manifesta-
tion of the great theatre design
surge of the early -1960s. Sir
Peter Hall and John Bury were
in on the early stages of plan-
ning now carried to a triumph-
ant conclusion.

-The great rows of uninter-
rupted seating spread out from
the stage in an eloquent fen

shape. The auditorium is ■ dis-
tinctly and happily shallow,

' giving an impression of both
intimacy and airiness. Three
thin balconies hug the ■ -rear-
wall (people who sat up there
reported enthusiastically to nxe
.in the intervals) and. despite
the dark colour scheme, there
. is no sense of oppressiveness.
Sight lines are excellent,
acoustics, on the evidence at
least of Henry IV, near per-
fect. The ca parity is abou t
1,100. the same as. in tee
Olivier. .

No scenery was flown on tee
stage, which is an airy yet
not impersonal cavern. John
. Napier’s design, reminiscent of
bis work on Nicholas Nicklebti,
is a magnificent .folly of bal-
conies. gangways, rotting beams
and rusting- armour. it is
arranged on three huge trucks,
hydraulically operated, that can
be cleared for battle scenes,
lined up and populated like a
medieval frieze for the tavern
episodes and, most stunning of
all, transformed into the streets
of London for Prince Hal's
coronation procession.

Throughout the “civil buffet-
ing," we watch a young man
wrestling with various father
figures and his own impulses.
I have no hesitation in pronounc-
ing Gerard Murphy’s perform-
ance as Hal, “a good sweet
honey lord.” one of the most
ei citing and original at the RSC

since David Warner’s Hamlet.
He enjoys Falsi aff" s company
but treats it with sardonic
detachment he cowers like a
terrified schoolboy in interview
wite his critical father; he
learns to respect the law by
scorning its officers.

In Part 1. Timothy Dalton’s
tearfully petulant Hotspur
forms bote a contrast and
interesting complement to Hal.
Their fight at Shrewsbury is
the exhausted combat of blood
brothers. As in all tee con-
frontations in these plays, it
is characterised by the generous
recognition of an opponent’s
reputation and worth.

Joss Ackland gives a steady
bui unsurprising reading of
Falslaff. Robert Lloyd an
inspirationally humourless one
of Glendower. Robert Eddison
dithers his. way into our affec-
tions as Shallow in Part 2,
Patrick Stewart is a sonorous
King Henry, his deathbed scene
wite Hal the emotional climax
of the entire show.

It is all bathed in exquisite
lighting by David Hersey and
a memorable anthem (giving
equal weight to the religious
and military themes) by Guy
Woolfenden. Trevor Nunn knits
all the elements together in a
series of wonderfully staged
scenes in which pageant is con-
tinuously undercut by melan-
cholic reflections on the human
gestures it celebrates.

Suzuki Tour Group/Barbican Hall

Andrew Clements

. The All-Japan Suzuki Tour
Group first Visited Britain in
1968, bringing the new gospel
of its violin teaching method
as developed by Sbinicbi Suzuki.
On that, tour, and two sub-
sequent opes, the Suzuki
Method was .firmly established
here and Suzuki groups began
springing up around Britain,
even if at times their relation
to the true philosophy of the
system was tenuous. Since then
however, the Tour Group has
not visited Europe and the
memory of the results teat an
authentic group and teaching
method can achieve has
dimmed.

On Wednesday the Tour
Group came' back, to the
Barbican Hall, ' and to an
audience at least 50 per cent
children, roost of them, no
doubt, Suzuki players them-

selves. Eight violinists and two
pianists took part, ranging in
age between 8 and 13. The per-
formances — of classical sonata
movements, Kreisler arrange-
ments, pieces for the massed
band of violins — immediately
laid to rest the myth that the.
Suzuki method. with its
emphasis on memorising the
music, leads only to mechanical
playing, to mere technical
excellence.

Enormous proficiency there
certainly was: the first move-
ment of Bach's Italian Concerto
rattled off with technical prob-
lems completely mastered by
an eight-year-old. the violin
ensemble whisking through the
last movement of tee Mendels-
sohn violin concerto in unison,
immaculate chording in some
Kreisler lollipops by pre-teen-

Layers/ICA

Rosalind Carne

agers. But there was great life
and enjoyment in the children’s
playing, for all the carefully
drilled bows and regimented
playing positions.

Three solo, performers should
be singled mit. Kuraiko Sekjima
(aged nine) for a sturdy perfor-
mance of tee first movement of
Mozart’s piano sonata K.310,
finding a good depth of robust
tone: KSnuko Komori (the same
age) for Kreisler’s arrangement
of Tartini’s Corelli Variations,
with hair-raising cross-strings
bowing; most of all perhaps tee
13-year-old Yuka Eguchi for a
enormously warm-hearted
account of the last movement of
Sibelius’s violin concerto; with
the harmonies passage hit dear
and true. The Suzuki leaders
claim that the group contains
no prodigies, but some of these,
surely, will go far indeed.

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v V‘’\-*V~ Clement Crisp

Tte Ballet of t^ t^rfe;OB?ra,
ij/r currently : maintaining a
doirtfte season iu- Paris. pjayjng'
at its home theatre and also at
' the Champs Elysees, I' saw the
programme in th? latter, house
last week; it can be conveniently
classified, as. American in teat- it ■
• ebtigprises^ ^ worts Taylor,

Glen Tetitiy, Balanchine,., and;
the Sisgapbre-bonj C&oo San
Gbtt’wbfr works wi# t&e-Wash-
ingtou Ballet '-The ; willingness
of, the -Offers directorate and
artists to try different styles,
from GrigoroWch io Cunrdng-
.iham, from ; to.- Petit, is •

: •admirable., and tee - artists, iat. the
Champs . Elysees. make a com-.

. mendahle-shot at the differing .
' dance manners of their "quad-
ruple /; bilL •••’.-’■ ■ T

. Of greatest interest as I have .
often commented in the past.;is*
the dancing of Jean ;Guizena^

here SfOri in Taylor's Auirvle
and Tetley’s Voluntaries,. Pro-
sessor of a magnificent, assured
technique, Guizerix* artistry is
such feat he commands .our
belief in his every role, and his
range extends from the Man. in
MacMillan’s Song, of the Earth
(in Which I thought him tee best
interprets - I had seen) to his
Grigorovicb’s Romeo.- He is one
•of those, rare artists able to
establish a donate of feeling
in -his -dancing which pervades
the surrounding choreography,
without stress or effort. His
temperament can seem .“dark”
or : tragic, :’. but in Aurole . he
proved a worthy inheritor of
spirit. Ainong his four com-
panions' I thought that Charles.
Jude and RrancoiSe Legree best
managed tee gentle; courteously
bounding, style of the choreo-
graphy in this shining,' civilised

barbican kml.

iHHS

’ -hr?:

YORK. TOM BEL!- TOM BAKER.
RALPH BATES.- VAULA WILCOX &
IRENE HANOI A HEpnA CABIIR.
Evas 8 Tues ft Sit.S & 8 9 wks entir.

r festival- theatre. oz« 3
.81512. Season sponsored tor MsrtinJ
L Roul Ltd. ON THE ROCKS. T«n’t 7.30.

"coMeoy- theaTre.s

I nut* JBi rriw -

b? t nK£ iL DUN 4 8r ^ hiWpenL *T1AMING

n ' jnjl pi m

GLOBE. 5.
wed -mat

little masterpiece-

• As the' eeotrai man in Volun-
taries Guizeris provided tee
strong - heart of tee piece — tech-
nically through prodigious
dancing, with pirouettes seem-
ing twice as-fast.as possible and
wife leaps which devoured the
air; emotionally .ferbuga the
concentration mid maturity of
Ins presence. By his.shfe Eliza-
beth Piatni was younger, purer
in Mne tean any other major
interpreter of the ballerina role.
Dancing of unfadteng beauty, her
vulnerability of manner, bote
strewed tee bterning -focus *f
Guizerix’ interpretation. The
surges of Tetley's choreograph^ -
looked ..well on the Champs
Elysdes stage and on the refined
elegance of tee Op§ra dancers’
slyle..' * '

-..My sympathies were" with
Claude de Vulpian who. had. to

assume .. Suzanne Farrell’s
created role h> Tzigane. 'Ibis is
Balanchine's ' realisation of
Ravel’s homage to gypsy
fiddling, fiuti of what seems like
kitsch -and then suddenly be-,
comes serious; it is balf-
mocking, maybe, but with Miss
Farrell it is hypnotically fascin-
ating because of fee dramas
Bal anchin e derives from the
twists and fiauotiogs of the bal-
lerina’s body. MHe de Vulpian
did weU. but hers was an inter-
pretation outside tee music
rather than part of it (which is
Miss FarreH’s genius): a brave
attempt at the impossible.

The otJher work in the pro-
gramme. Cboo Can Gob's Leit-
motiv. .looked Hke a not very
brave attempt as a ballet Steps
scuttled desperately in pursuit
i>f Rakhmaninov’s . ' Paganini
Variations, and there seemed a

belief feat by fadting arbitrary
gesture or predictable each aloe-,
meats oo to a musical phrase,-
choreogfaphy would result- 1 do
not believe this to be so: Ten
dancers, glumly garbed in black-
currant-sorbet leotards by CaroL
Garner, mooned and bustled
about kt hermetic incidents
which had the musical and
choreographic profundity of a
calisthetics class. Enter, half-
way teruogh, GhisJ-aine Thesmar
in. blue and a state of anguish.
Her manner implied that for
unfathoomable reasons she bad 1
invited , all these ghastlly people
to dinner. She finds Michael
Denard. The stage fills wife ,
smoke which smelt from my
stalls seat as if tee cast had 1
set up a barbecue
M3Je Thesmar and -M Denard
mope. So do the rest of the cast,
but with less determination.

’ Three men in one bed should’
intrigue the most jaded London
audience and the ' unusual
melange makes a promising
start to this pleasing new musi-
cal. ** How did I get into this?”
croon Andy, Paul and Ken.
Cruising, of course. Andy picks
up Paul, -brings him home and
finds himself sharing his delect-
able catch wite his live-in lover.
The show carries on in a similar
vefo highlighting the joys and
dangers of sexual freedom with
a light ironic touch.

Alan. Pope wrote book and
lyrics and the dialogue is suffi-
ciently lifelike to become .occa-
sionally- .'laborious. Continual
conversations about who sleeps
with whom, and how they feel
about It, grow somewhat
claustropbic, especially as we
never move out of the
exceptionally tidy. though
stylish, bedroom designed by
Amanda Fisk. But what
might have been an exercise
in navel scrutiny (not to
mention smooth chests and well-
shaped buttocks) becomes a
veritablye treat thanks to Alex
Harding’s music.

SADLER'S WELLS THEATRE EC1. CC 27B
8918 (6 lines). Grp sales 379 6061.
2 < hr Instantly confirmed res 200 D 2 D 0 -
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From Toe to 26 Jure. Eves 7.30. Sat
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3rd Dance Subscription now open. Rina
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PALACE. CC 01-437 6834. CC Hotline
437 8327. Andrew Lloyd-Webber's SONG
AND DANCE. Starring Marb Webb ft
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extended Id Scot 25. 1982. M on-Fri

6 pm. Mats Wed 3. Sat 5.45. 8.30
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6061- •

TALK OF THI TOWN. CC of-754 SOS1.

• For reservations or on entry. London *
Greatest Night Out from 8 pm. S hours
at Top Entertainment THE TALK OP THE
TOWN GALA GALAXY REVUE C9-30J
Wtth a cast of 35. JOHN longthqrne
( 1 1 om). Dinner. Danclnp, 3 banda;
LAST 2 DAYS.

VAUDEVILLE. -CC 01-436 9988. Ever 8.
Wed mats 2.45. Sat* 5 & 8. GORDON
JACKSON In AGATHA CHRISTIE'S

- Cards on the table, fuiiv air

Conditioned theatre.

FERENCE. A near oiav by Robert Da»|d
MacDonald. Evas i-O. Mats Wad 3.0.
Sat 5.0.

i#:

' — "one

S CC 01-85B 7TSS.. «a*
-21 7.01. Mats jet 4 0

16 -Cownrd's DESIGN FOR

NATIONAL. THEATRE "S" 928 2252-
OLIVIER' (saen sage)' Ton's. ■ Tomor
7.TS (io*r nice ereval DON- OUfXOTE
by Cervantes. (THE ORESTEIA — last peris
23 ft 24 Jane).

LYTTELTON (prosceotun stage) Ton't
7A5. -Tumof 3.00 - A . -7.45 ON THE
RA 77LF by Tool Stoppard.

COTTB5LOE ^nun RstMorlem— tow brlt*
tuts) Lass PerU Teat 7-30. Tomor 2.30
ft 7 JO. ttieo 17.1 a. is June summer
bv Edward Bead.

Excellent' ebeae salts -day tf carl all 3
theatres- AUp standby 45 nils beta
start. Car -park. Restaurant 920 2033.
Credit card Km 928 5933. Air

rondii oping.

NT also at HER MAJESTY'S.

ROYAL COURT THEATRE UPSTAIRS.
739 2634. 01 FOR ENGLAND bv Trevor
Griffiths. Evfls 7 jo. All Seats U.

F.T. CROSSWORD
PUZZLE No. 4,894

ACROSS

1 Bed one flower and a shrub
(IX)

7*nd 28 At tills point, she col-
loquially goes to dine (6)

• 9 -Wide, second-class thorough-
fare (5)

16 Slow, sad song wite accent
.from “Amethyst” (4, 5)

11 The later consequences of a
seeond crop (9)

12 Creditor takes fish In basket
(5)

13 Passionate incentive from the
’ ..east (7)

15 Perform or entrance (4)

18 Wine put in a stirrup-cup (4)

28 Release record before time
(7)

23 Jacket I Obtained from
American racoon (5)

24 Replace . very good mixed
.seed (9)

26 Depart for a vacation (4, 5)
27. Left in ship to swell up (5)

26 See 7 Across

29 Stag hunter in his cover (11)'

' DOWN

1 Steals vegetables (8)

2 Walked around a rabble hold-
ing an g lin g equipment (5-3)

3 The smell of cooking from
■ chicken rd ordered (5)

4 A doctor's star performer giv-
ing. ill-lack (4-3)

5 Mad. but sympathetic (7)'

6 Member - of alleged secret
- society got up peevish (4-9)

He plays piano and
synthesiser and is assisted, in
some wonderfully varied
arrangements, hy Adrien Cook
on guitar. The mood ranges
between a brighl. jazzy number
on tee importance of friendship
to the soppiest ballad. Michael
Cashman as Andy is not only
an intelligent, imaginative
actor, but a strong singer, and
he strikes a universally recog-
nisable emotional chord in his
warm rendering of " Before He
Came Along.” Lyrics through-
out are more powerful than the
spoken word.

Despite tee presumably
limited appeal of gay troilism.
or even gay .orgies, the over-
whelming sense is one of
ordinariness. These are situ-
ations that occur to all of us.
As Ken and Andy lie in bed
talking about feeir staggering
six year relationship I knew I
had . heard ii. all before, but
that made it no less significant.

What makes it theatre is the
-careful arrangement of inci-
dents and confrontations ably
directed by Drew Griffiths.

Moreover there is a subtextual
sense of the terrors of the
meat-market outside and the
sweetness of home. If you are
going to play super-stud, you
need someone to come back to.
Camp gender role-playing are
happily absent; winners become
losers and losers become
winners. Male homosexual love
is portrayed as a peculiar blend
of romance. Body-worship and
cosy domesticity.

Saleroom

Richard Green, the London
dealer, paid I£70,2000 for a
pair of views of Rome by
Caspar van Wittel at the Adare
Manor, Limerick, house sale
which totalled If 875.732 after
three sessions. A Canaletto view
of the Doge’s Place in Venice
made 1£22,680 while among the
furniture a George III marquetry
bureau de dame, attributed io
Pierre Langlois, fetched

IE7Q.200.

1 2 * 4 |5 1 6 ■§? I \i

1 Pffi

■-C

fltjl

u~ r

u

7 One who catches a Dutch
vessel (6)

8 A narrow lane with . the
Spanish in control (6)

14 Imbued by static edition' (B)

16 Possess a tuft of hair — it
should protect the neck (8)

17 Vex troublesome person in

ale <81

19 Admit into country (7)

20 Dishearten some French
newspapers (7)

21 She accepts a spiteful woman
to scorch with invective (6)

22 Wager about question in 12
(6)

25 Apply irlctloa to one article

to make madder T5)'
Solution to Puzzle Jfo. 4*893

CJaBBCinSQ DBD3QE3

□ b d n n n hi
□□qdqdob BranooD
BnOBQBEIE
□□HD0ECinn GHBOD

□ D E Q E □ □
□gob DcnEnaui

fU O a DOB

□□amnnn &□□□

n n gj a b b n?

B0DC3B HQUEIDBnBB
E E a. B. □ E □ Q
□EEann ananoDDo
a . ta_a . _ a d □ o
nnnaaB moHniaBEr

18

• . : •■'..T-'-Vi-

F INANCIAL TIMES

THIRD WORLD DEBT

BRACKEN HOUSE,: GANNONSmEET. LONDON EC4P4BY
• r fetegramS: Fatentimo, London PS4.Tetec 8954871
Telephone: 01-2488000

Friday June 11 1982

Show of unity
at Nato

By Nicholas Colchester, Foreign Editor

“W

THE SUMMIT meeting of Nato
in Bonn has provided a much-
needed demonstration of the will
to unity within the alliance.
Differences within it have
become commonplace, but the
members' intention to bridge
them is cruciaL

By including a commitment
to “genuine” detente in their
communique, the heads of
government allowed both for
American doubts and for
German belief in detente. Un-
certainties will remain about
what makes detente “genuine,"
but at least the concept has not
merely been given decent
burtaL For the Reagan Admini-
stration that is a considerable
move from the hard line it
pursued in its early months.

This welcome evolution io
Washington’s thinking is also
shown by President Reagan’s
reaffirmations in Europe of his
■belief in arms control: he has
stuck to his proposals for the
“ zero " option to banish the
new intermediate range tactical
nuclear weapons from Europe:
he has repeated his wish to
negotiate a reduction of
strategic weapons in both the
U.S. and the Soviet arsenal; and
he has made proposals to
breathe life into the talks for
a reduction of conventional
forces. Inevitably all of these
proposals have a propaganda
element but they do point in
the right direction.

They show an awareness both
of the sensitivities of a Europe
which would be In danger of
being wiped out In a nuclear
exchange and of the political
pressures, particularly on the
West German Government,
exerted by the peace movement.

France continues to stand
aside from integrated Nato
defence in Europe, but the ■
Bonn summit was notable for

the warmth with which M Pierre
Mauroy, the French .Prime
Minister, spoke of the need’ for
a U.S. presence in Europe. For
his part. President Reagan
sought to reassure, those who
are afraid that other worldwide
comltments may cause the UJ5.
to withdraw forces from Europe.
But he atso said that the Euro-
pean allies must do their bit
by carrying a fair share of the
burden of joint defence.

The agreement in Bonn that
Nato would consult in case of
flare-ups outside the treaty area
—say in the Gulf — should be a
matter of course among allies.
Implicit in k is the wariness
of at least scnpe Europeans of
being dragged into any possible
ILS. intervention in such areas.
But the Europeans did sub-
scribe to Nato’s willingness to
give help to countries not in
the alliance if western security
is at stake.

Psychologically it is impor-
tant that despite ntisgiv
among some of the Continental
powers, Britain was not criti-
cised for diverting warships
from the North Atlantic to the
FaJ klanfls.

Summit meetings are by
nature staged events. Bonn was
no exception. That should not
obscure the fact that the allies
showed that they have more to
unite than to divide them. The
learning process in Washington
Is palpable: the Reagan Admin-
istration is learning to appre-
ciate the sensitivities and spe-
cial interests of its European
allies.

It is up to the Europeans to
live up to that by resisting the
temptation, for financial or
other, reasons, to allow the de-
fensive potential of Nato, espe-
cially in the conventional field,
to decline relative to the poten-
tial danger from the East.

Britain’s record
on trade

THE IDEA' that Britain is
becoming more protectionist is
“pure myth” according to
Britain's Trade Minister Mr
Peter Rees in a speech at Wil-
ton Park this week. Perhaps
somebody should tell the textile
producers of Hong Kong, whose
trade representatives at the
current bilateral negotiations in
Brussels under the Multi-Fibre
Arrangement (MFA) were
threatening yesterday to go
home in disgust. There is a
widespread belief among devel-
oping countries that Britain is
partly responsible for the Com-
munity’s hawkish stand on tex-
tiles. Can Mr Rees really be on
firm ground?

Admittedly the MFA is un-
usual. It remains the only
instance where the agreed rules
of the post-war international
trading system, including the
all-important non-discrimination
principle, have been formally
set aside for an extended period.
But it is nonetheless a. crucial
factor in Britain's multilateral
relations with several develop-
ing countries where important
interests other than textiles are
at stake.

Concern va Bong Kong and
elsewhere at the Community’s
tough stance on textiles is
understandable. Textiles and
clothing represent more than 40
per coot of the Crown Colony's
exports and the 12 per cent cut
at - the volume of saies feat
Brussels is trying to negotiate
worifad put numerous firms out
of business when, access to other
■world markets is becoming fe-
creasngly dafficutt

What be did say was feat the
proportion of duty-free manu-
factured imports into Britain
rose from less than a third in
1960 to nearly 80 per cent in
1980. And he attacked the claim
in a recent study of non-tariff
restraints by the National Insti-
tute of Economic and Social
Research that nearly half
Britain* ^*rarts were subject
to ooiHanff restraicwyjpF 1980,
saying that the T^VLnient of
Trade’s owe researS^Suggested
a figure of less than 10 per cent

Since the rise in Britain's
duty-free imports from 1960
has been heavily influenced by
Britain's entry into the EEC.
the developing countries may
take more convincing. As for
non-tariff restraints, Mr Rees's
figures should be disseminated
widely.

A dear warning was delivered
by the Indonesians in 1980
when they, boycotted British
goods in response to a tough
British negotiating position
within fee MFA. In order to
protect parts of the textile
industry from an insignificant
level of imports, the Govern-
ment jeopardised substantial
exports of more sophisticated
goods and equipment.

Britain's record is not all
black. And governments have
to mitigate the social cost of
structural adjustments. But for
how long? The MFA has its
origins , in the Long-Term
Arrangement on Cotton Textiles
that began way bade in 1962.
There is a strong, though poli-
tically -difficult, case for a well-
publicised British shift towards

BY SHOULD Mexico
* turn to fee IMF?" a
senior ' Government
nffieiai asked rhetorically in
Mexico City last week. “Our
IMF quota is , SDR 800m
($900m). So whit could we
borrow? J2bn or $3bn spread
out over three years? $2bn is
what we need to borrow each
month this year to meet our
gross borrowing needs of $25 bn.
.Politically the IMF remains
taboo in this country and it is
not worth the polrical pain of
explaining an approach to it
for one month's mosey.”

Mexico, like Brazil two years
ago, is an extreme example of a
developing country - faring a
cash crunch larger than any-
thing seen before in fee world’s
financial markets. It is not
typical, yet it' does show up
rather dramatically how. the
IMF's resources must bear some
relation to fee magnitude of fee
world's financial disparities if it
is to play its pert in correcting
them.

Jacques de Larosifere. fee
managing director of the Inter-
national Monetary Fund, talks
of the “critical mass” which
the Fund needs to “ entice
member countries to agree to
meaningful and realistic pro-
grammes (of economic adjust-
ment), and also to catalyse the
provirion of other external
funds needed for fee financing
of the balance of payment prob-
lems in question.”

The attractiveness of the
Fund becomes ever more criti-
cal as bard times loom, as com-
modity prices fall, as fee cost
Of debt stays high, as inter-
national banks become nervous
and as any meeting of ministers
or heads of state will adngit to
deep concern about the econo-
mic- state of the developing
world.

If it is to boost its lending,
the Fund most offer sufficient
enticements to developing
countries to compensate for:

its image problem as an insti-
tution dominated by. and
oriented towards, industrialised
countries;

ts conviction that it is pri-
marily a provider of medium-
term solutions to balance of
payment problems and that
some of today’s debt problems ■
are outside Its brief;

—its insistence that borrowers
must make economic adjust-
ments to deserve IMF loans,
that it cannot become purveyor
of free lunches to. the world.

In fee last decade the IMF
has found it hard to keep its
mass above the critical leveL
The current total of IMF
quotas— -the basis of the IMF’s
finances— amounts to only . 4 -per
cent of world imports against
12 per cent in .the early 1960s.
The two oil shock s, o* 1 974 and
1979 led to pa balances
— fee “ recycling problem " —
which were disproportionate
even to this rapidly expanded
world trade. Moreover these
same oil shocks threw up a
pattern of surpluses and deficits
which the IMF co -opera tivq was ■
poorly designed to cope wife:
countries wife large quotas were
in deficit and Opec countries
wife small quotas heavily in
surplus.

' developing WprLdv —
.tougher the? Fuhd &al - fe mt

.tougher -Wife ,:fefc "deveibpmg

• woriA .^Wl^.bafe .really
Pfawd.7 „ ne explained, * : is" 7hot
L'-4“ tightenings of coDdfticmaijty'

■perse,. It/isla: WOTsen&tgofffie
external conditions ' 'fit ': .the

\.g»uhtiy~ int question ^ and- fee
-jseed fo^-inote adjustments, r z ■ .

\QE "f couKse^ ife"; said, it -poor'

oouaby might not' be-, ride fa
; resolve. . everything in tiicea
yoar&.ra»T ;inr such cases ’

. ^sohitioh . could :not be Joubd
v'saaoty.vtth

Fund’s tjSurpasa was to provid *
df j&ej .

meats, •asristxmee-on a revolvW
; basfe,” hot. to «ct_as a devrio>
bask. .

"-^■Tlf . we think a- arantoy-Ss hot
r 1n a posifem bo right itk baiaice
rr' fii = 'payments t wttlfer -
. .. years; and feat' the adjuSbkent
■ measures- wfiJch ought h/ be
taken go beyond sociiliy &jter-
- able limits in fee country con-
cerned. the ' pioper soliriwi is

;fo present fee problem » .fee

.Jt
I -■*

International communfty-tttvsy
: dear terms” hie sa&tL V -

•jr
\ S

Martyn Barnes , • .^SUCtt. 4 VteW Of fee

... ^'the Fund’s scope waa-. cfofafay '

Commitments may be spread out over a number of years but- are registered in fee -year they are first entered into As arasult flls- . ' ;injplicft in fee hard-nosed c^;
bursesneuts— fee extent to which fee borrower actually draws money under an IMF programme— -are smaller fean tommitments jcuhiqud put ouv- by.

and tend to build up wife a lag

In such circumstances the
IMF as forced to increase its
firepower by borrowing directly
from selected members. The
most striking example was fee
“ oil facility " introduced in
1974. This took cash from mem-
bers stall in surplus, including
oil producers, and lent to Indus-;
trial and developing countries
hard tot by fee oil price rise.
The facility rose to a peak of
SDR 7b& in 1977 bat has now
been, wound right down.

It had an important effect
upon fee IMF's thinking. OR
faeffity ' money was lent wife
few economic conditions
attached,. But the IMF found
feat without such conditions
borrowers avoided facing up to
the new reality of much higher
energy costs. So it decided feat
henceforth it must always .
insist on economic adjustment
when lending.

In 1980 and 1882. fee Fund
made a surge of new commit-
ments to developing countries.
Net new commitments rose
from SDR l£bn in 1979 to
SDR fiSbn in 1980 and SDR
12.7bn.in. 1981, r Thas. reflected
a number of factors. -The
North-South debate was at -its
height. It was fee aftermath,
of the second oil shock. There
was a liberal administration in
Washington. The multiple of
BIF quotas- -winch - could be
made available to any borrower
had been boosted. The Fund
was anxious to: demonstrate its
“critical mass.” • Above ail,
substantial borrowers in fee
developing . world overcame
their reservations, or felt a
financial pinch, mid turned to
the Fund: India was fee most
impressive example.

These commitments bad to be .
funded. The word commitment
reflects the unique way in
which the Fund operates.
Lining up sufficient quantities
of “usable currencies,” the

Fund “commits” itself to “pur-
chase” an agreed quantity of
fee • drawing country’s - own
currency -during "fee span —
typically three years — of a “pro-
gramme.” The programme
establishes fee steps the draw-
ing -country should taka to
bring its external payments
back into balance.

This ** conditionality ” gets
tougher as the amount com-
mitted increases. Despite com-
mitments spread over several
years, the drawings in fee later
years of any programme depend
upon a satisfactory performance
in the earlier years.

There was a -period in

In fee me a ntim e, and sotne-
what unexpectedly, fee Fund’s
financial position has impfeveti
and pushed 'further thought of
market, borrowing into ..fee
background. Two things have
happened: fee Fund’s stock of
usable currencies has tepidly
improved, and fee rate at which
fee Fund is * undertaking new
commitments to developing
countries has ' dwindled
strikingly. • ■ .

Quotas of usable currencies
sow stand at SDR 24-lbn com-
pared wife SDR lOBbn two

" arid central bank, governor ia f
' T ■ . ' - ■ fee Group of Ten at fediMceht

cumulative defedt. of fee ncm-oU’

developing . countries will be ^ Yet. was ttos consi§t^*:-wi&
•tittle du&oged fete _ye«r from. ! fe e oo m inunlqud from' .feje Yec- ■
fee record f99im they notched <nte month^ater?

up in 1981. Their needs. are as ' jmportant
great as ever, but fee OIF has * ^ ^ tianC ^ '* flnw& .-asd ;

brought the ' expansion of its

lendfeg to them ainuytt to a
•halt’ ' '

What has happened? IMF
officials provide 1 three explana-
tions for fee showdown.

official . assistance
maintained - ■. «ni fiiecr

amount end effectiveness sbcxfld
be ixuneased as far as-possfele,
wife' responsfixititits shared
broadly among all commies'
capable -of ^ cuntrSm- .

fern,” said fee leattere of
industrial world. > -• *' r \ . .

&■

c>

€

J.S

&

$

Qr is. if coostetarf- wife fee*

has ' registered no net increase
in coauxdooeats^ so far. this

An increasing number of
commitments have been revoked
because borrowers are failing
to meet the Fund’s criteria '

• Am. increasing number of

commifexehts — ten out of 34 —
have been revoked part-way

years ago. Meanwhile fee Fund *****

- borrowers , are railing to meet and of the Bank fbr 'IsMtsr-
criteria laid down by fee Fund, national Settlements, fe*t ekr

• The Fund is tending to ^

.limit new commitments ^to one

year because three-year pro-" ® e Ttord WorW may now-pa*
increasingly

ts?

<e-

&

««'

grammes appear
hardlfor developing countries
to adhere to. The Fund .would
prefer to negotiate consecutive
on^year programmes, : than
argue wife fee borrower oyer
whether fee later payments of
a longer programme are still
merited.

a greater threat titan exc e ssi ve
ttxfeuriasin? • . .

e -
&
52

- : C

1980-81 when it looked as though
fee Fund might have trouble
finding fee “ usable currencies "
it needed to meet its quite
rapidly expanding commitments.
In addition to quota finance, to
bilateral borrowing facilities
arranged through the Bank for
Inbenmtional Settlements (BIS),
and to substantial sums made
available to fee Fund by fee-
Saudi Arabian Monetary
Agency, the Fund's treasurers
begem to float fee idea of rais-
ing - additional funds In fee
international capital markets.
But fee Interim . Committee,

. winch decides Fund policy,
ruled feat such fund radsir^
should he very nttxch • a last

calendar year and wfll probably
not commit much more' than
SDR 6bn by fee year's end.: .

The first development is doe
to a change in fee pattern of
deficits - winch made things
difficult for the Fund during,
the 1970s. Industrial countries
account for two thirds, of .fee.
Funds ; quotas. -.Where, . they .
registered deficits of J45hn on
current account ii'1980, they
wiH probably show a smplus of
$lTbn in 1982, according to fee
IMF. " ,

It would be pteasW to repbrt
feat fee. slowdown in new IMF
craxKxu&nents is due to an
improvement
position of

Oil fife, face of it, not There
may however be ways to whidh
fee Ftmd can- preserve rs
character, and , yet do . more-fa
meet fee - needs spelt out at
Versaailes. ; They mainly cob--
cern fee. FumL'k . effective
“ mass.” ;

* -,A ; rafecai. inae^s. ^ imfi re-
ttistriibutfoa- -of « JMF .^quotas
wotoid mute fit mure wurfe wtote-
for Brazil or Mexico, to subject
feemsefives to IMF" scnifiny. A
„ . ... _ ^ „ mndr greata- "degree of co-

But behind- these mechanistic i' operation between Fund and

ZZ

rr

• The 1990 and 1981 figures
•included: some- big bortwere— ^
Turkey, India, Yugoslavia. So:
far in 1982 no big .borrowers,
have arranged programmes wife
fee Fund.- . ’

l

explanations . one detects, a
deeper constraint. > Under fee
eye .-.of a .sceptical ' -Reagan
Administration, and . pf ; dther
industrial • countries- .* with
rigorous economic policies,. the'
Fund iF.trying. to stick .to' its
original; brief when fee prob:
lems of .many developing coun-
tries have moved beyond fee
scope of that brief. The -Fund
believe

resort because it threatened- world. Unfortunately fee IMF’s
'fee Fund's basic character. . own estimates show -that fee

does not believe ft cap. or

should/ bear fee . brunt of their

in the financial "problems. ^ .

fee developing In a ifecent interview M/de
Larost^re made it clear feat as
economic conditions^ • for fee

fee World .Bank ..would aflaw
fee Fimd r ti>:>offer ‘a feason.
- between balance of- payment
■^programmes andr longer term
development programmes: tins
presupposes a substantial in-
crease in ' , fee Worid '.Bapk'S
aitofity to : make, soft loans.
Rnafily, fee- IMF— as an inter-
g ov ern me ra ageray-ntight do
more 46 coMriamte^ tfoeprovadoo
of Rovenuneit aid 6r- of gdvoh-
ment-backed liens to tfioae
coerntries whose proWente hare
gone beyond fee point :where
fee IMF^ feds hs o^ "Jj»-
granunesarere

fci

Men & Matters

Flair path

Sfenfflcautiy Mr Rees did not. fee doves in fee MFA camp,
embark on a lengthy defence of Then Mr Rees’s case would look
Britain's position in (he MFA. more plausible.

Merger control

IT IS beginning to look as
though conglomerate mergers
may cease to be a matter of
bunting concern to fee British
competition authorities. If 90,
this would be welcome. Yester-
day fee Monopolies Commission
cleared fee bid by BTR, a large
diversified group, for Serck, a
manufacturer of valves and
other components. Although
there is a product overlap
between Serck and a BTR
subsidiary, the conglomerate
nature of the bid was one of
fee factors feat provoked fee
reference to fee commission.

In the Kgltt of fee earlier'
clearance given to fee mergers
between GEC and Avezys and
between Blue Circle and Artoit-
age Shanks, fee commissi on
appears to be signaling a green
light for conglomerate bids. It
is true feat fee commissioa is
not famous for consistency.
Other reports, notably on
Lonrho/House of Fraser, point
in a different direction. But the
recent record is sufficiently
clear to discourage fee Govern-
ment from referring ‘ future
conglomerate mergers 1 to fee
commission unless there are
some special factors (often of
a quasi-poiatical nature) in-
volved.

This should mean feat the

authorities . win concentrate
more attention on horizonal
: mergers which are - likely to
reduce competition in particu-
lar .industries. In studying
conglomerate deals the Mono-
polies Commission has had to
assume fee role of management
consultant, assessing the com-
patibility ■ and quality of two
management teams and forecast-
ing fee commercial conse-
quences of a merger. Investi-
gations of this sort are highly
subjective; -they are not
commission's strong suit.

On fee whole it is better for
the success or failure of con-
glomerate mergers to be deter-
mined in the market place. It
may be feat governments want
for social or economic reasons
to curb fee process of industrial
concentration in which con-
glomerate mergers play a part
— although it is not certain,
whether concentration repre-
sents a serious problem m a
relatively open economy like
that of the UK. But if that is
a policy objective, it should
probably, be pursued through
changes in the tax arrangements
which penalise fee distribution
of surplus cash to shareholders
and encourage managers to
expand their empires.

During the Falklands crisis.
Britain • has discovered ' fee
advantages of having ambassa-
dors in the U- who combine a
flair for public relations wife
their diplomatic skills.

Taking a leaf - from fee
British book, fee European
Commission has decided to
send one of its most colourful
and able officials to head its
delegation in Washington. He

is. moreover, an Englishman.
Sir Roy Denman, after five

gruelling years ■ as director
general for external relations,
has agreed to accept . fee
“ stimulating challenge ” of try-
ing to sort out on . fee spot,
instead of .at arm’s length, fee
EEC’s growing trade disputes
wife fee UB.

In a recent and characteristic-
ally forthright speech to the
Houston Chamber of Commerce.
Denman quoted Mark Twain's
observation on Carlyle’s attitude
to Americans: “At bottom he
was probably fond of them, but
he was always .able, to conceal

it. '

Denman makes less effort to
conceal his liking for things
American but he certainly does
not restrain his criticism of
those UB. policies which he
things are erratic or unstable.

His effectiveness in Brussels
has -never been in doubt.: And
his political and personal profile
has been- consistently- higher
than most directors general —
not least- because his Commis-
sioner Wilhelm Haferkamp, is
not by nature one of fee world’s
most energetic men.

Denman’s industry., by con-
trast, has been phenomenal and
his travel schedule would have
killed anyone less robust He is
58 today and a desire to be able
to look forward to a reasonable
period of retirement may well
have been an influence in his
Change of job.'

‘ A huge man — he may be the
only foreign diplomat capable
of looking the Fed's Paul
Volcker straight in the ey<

■Denman has spent viru tally his
whole career as a trade' nego-
tiator.

He joined fee Board of Trade
in 1948 and was deputy secre-
tary at fee Department of Trade
and Industry from 1970-74. For
two of those years, be was a
member of Ted Heath’s team
which negotiated Britain’s entry
into fee EEC.

Denman developed a taste for
Brussels and elected to go there
in 1977 after two years as
second permanent secretary in
the Cabinet Office. By that time,
he was beginning to feel uncom-
fortable in the Whitehall
machine which he now regards
as excessively insular and none
too skflfu 1 in handling Com-
munity affairs.

: Denman has a talent for u tru-
ing a phrase, though not all of
them are printable. One feat
was leaked to fee press — not
greatly to his dismay-— was his
reference to Japan, in a Com-
mission internal paper, as “a
country of workaholics who live
in what Westerners regard as
little more than a rabbit hutch.”

He once described a farmer
senior British civil servant wife
a taste -tor alcohpl as entering
his ' Brussels office “ preceded
by a cloud of whisky tomes with
a agar burning dangerously in
fee middle.”

WH' fee diplomatic life force
him to tone down bis language?
“I would hardly live without
it” he says.

1

Jjuppoj£ ft'S th£
tfyflif Alert of-
jfc- CeWd (ryiatUcl

I

Intermediate Repository, at
Hayes, used by 54 government,
departments and other bodies?'
“ 52,000 feet of reeords (615
tons, 627 tonnes), approximately':
4.6 per cpnt of the total capacity
of the repository, were sent for
destruction?"

Posh going

. LoTti incbcape. fee tough but
quietly spoken chairman of
P & O yesterday Announced
plans to -step- down anud a
general reshuffle of the ship-,
.ping group's • board.

He does not leave fee bridge
until next June wfeen he twill be
65. The bdard changes, he says,
reflect his confidence that
P & O has weathered the
administrative and financial
crises of fee late 1970s.

Record review

Where wotdd one go to inquire
about the influence of a tooth-
ache suffered by Earl Haig on
the development of fee Army
Dental Coups?

From whom could ote learn
the rate of a staffed sandpaper
CHigfat on Spitsbergen on a 19th
Century expedition?

The answer in bo* cases is
(of course), fee Ptfetac Record
Office, winch, in its 23rd annual
report, offers fee above
inquiries an indications of fee

range of subjects upon which its
archives -are coasuitted — a.
range' which, it remarks wife
miht su r pris e,' “continues to
outstrip fautasy.”

Although fee Office Ss norin-
afiy associated in the public
mind wife shock-horror revela-
tions by investigative journalists,
at last given access to 30-year-
old pofiticai documents, the
major preoccupation of "those
visiting fee Official premises in
Kew, Hayes and ChanCery Lane
is, apparently , wife their family,
trees or pedigree.

The report’s on preoccupation
seems to be statistical* It- an-
nounces with some satisfaction
that there are how 434,000 feet
of shelving In its p ran tofe : feat
99,000 people visited fee' offices

This typical Incbcape- under-
statement is a reference to the
company’s move into the red in
1978 and his row wife erstwhile
close colleague and chief execu-
tive Sandy Marshall.

Marshall, who backed' Inch-
cape in has battle to' fight off fee
merger plans of building group
Boris, was later eased out after
■a difference of opinion over how
best to sell off assets mid keep
fee group afloat
. Incbcape also swept . out 4be
entire l&man corporate PR
department as weU as the com-
pany’s planning and forecasting
unit. He has been chairman, in'
executive or non-executive guise,
for, one of fee most difficult
decades faced by fee British
stepping industry.

But the fact that it has been
in the Hack for most of. feat
decade and feat it has stayed
.strongly- comm i tt ed to stepping
is due in no small measure to
Inch cape’s skills.

during 1981 and feat fee . num-
ber of documents produced rose ■ ~ *" "

by 11 per cent to 703,900; -and Sounds right

feat the film Hbrary.now con- ^~ U,,UO "& nt
tarns about 5 Am ft of -film. Tonte

And what, one wondqrs, win hooter,
investigative journalists of the
sinister paragraph that 'at the

a rheme” — lunchtime

Observer

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Financial Times Friday June 11 1982

19

1

w

f

p _

V.;’ -> >4.

POLITICS TODAY

The gleam in Thatcher’s eye

By Malcolm Rutherford

PRESIDENT BOTTERHAND of
France snanped fit up very weft
at the' end aE the Versailies
summit m ee ting last Sunday.
“The United . Kingdom most
(recover what fit has lost- We'
shall do everyfodog that we can
to make. sure, that . peace will
.prevaU over war." ••

Zt is mode tire same is
. Westmrinstesr and- Whitehall.
Thffie is a . sense of .. grim
inevltahffity ■ tfiat : (the - final
British- , assault on. Ihat Stanley
mast so ahead, may even have'
gone-, ahead. Extraordinarily
few people seem to receive the
full retorts of what isiiappero-
ing on tiie ground But there is
an awful lot of ‘questions about
what happens after that.

The consequences of the'
FaDdamte war - east be tidied
into two pasts, the short and.
the longer term, though. the two
are of coorse related. Assuming
Britain, regains the islands and
the surviving Argentine forces
withdraw, there w33 be some
immediate questions to be
resolved.

For instance, what is to
happen about the Governor?
Mrs Thatcher bag Mated that
she would tike to restore Mr
Bex Hunt, though the Foreign
Office is less keen and it seems
to me to be quite inappropriate
to return a relatively low-level
former cohwnafl officer to a
totally changed situation. It
could give altogether toe-wrong
signal to the rest of She worW
which is toafemg for evidence of
a longer-term solution- It ntight
be much better to- emphasise
' the temporary and extraordinary
nature of like post-assault
position by installing a Military
Governor to preside over -
reronstructaou.

: There is also the question of
economic sanctions . against
'Argentina. The heavyweights _
of the European Coimnunity — '
- France and Germany — would
like to fend them as soon as
possible: that is. very shortly
after the final assault. Their
reasoning is that they want to
avoid a trade war with Argen-
tina and perhaps steadily
worsening relations with Latin
America as a whole. It will be
very difficult for Britain . to
resist, though it would be worth
trying to do something about
restrictions on arms rales. ..

All sorts of contingency plans
are around mfWbitehaH but the
thinking is .fluid, to put' it
mildly. Mrs Thatcher, for

example, produced a new justifi-
cation : for tiie British action
when she said in ah. interview;
with . American television -on
’Wednesday: “Those islands are:
strategically important . . . some
very big oil tankers have to
go around Cape Horn to’ get
round to Alaska. They have a
yery enormous strategic value.
They are also to some extent
the gateway to the Antarctic
which will progressively become
more -important' in resource,
terms to the world as a whole."
Odd that no one 'said .much'
about that before.

She also' introduced the idea
of defending the extended air-’
strip at Port Stanley with
Kapler missiles in a way that
...she has not yet done in the
House of Commons. No doubt
there are other possibilities .star
to be revealed.'

- All that will have to be sorted
out in the near future. Yet
perhaps the more interesting,
question is what the Falklands'
campaign will do to Britain and
to British politics in the longer
term.

One short answer is that if:,
has transformed the fortunes of
the Conservative Party, though '
I should not read too much
into tha t First, there were some
signs that the Conservatives
were beginning to recover
before the crisis broke out '
Second, it really would be
remarkable if the bulk of
British opinion were to turn
against the Government, and by
implication the armed forces,
ar the beginning of a campaign
in which Britain is in the right.
There is ; a natural rallying to
the fl ag

. ' Third, the turnout ini .the
recent by-elections at Beacons-
field and Merton, Mitcham and
Morden does not indicate over-
whelming enthusiasm. Psepho-
logists wiB be more interested
in the future behaviour of. the
50 per cent or so who were
eligible to vote and chose not
to do sow

Fourth, the coverage of the
war by the media — and more
recently of events in the MadtEe
East— 4ms. distorted the news at
home. The disruption caused,
by industrial action to the'
Heaflth Service now seems to be
at least as great as daring -the
'Vinter of discontent 7 ’ in 1979,
yet very little is heard of it
because it' is crowded out of
the headlines. There may also
be an aH-out rail strike later
this month-

President Reagan: his moral convictions strike a chord

What will the Government do
about that? “Give way a little
to the nurses and stand up to
the railwaymein,” is one fairly
typical Tory cry. We shall see
in due course, but the point is
that old problems have not gone
away.

There is a further issue
which has only latch? been
coming to the fore. The war
will have to be paid for. Mrs
Thatcher spoke oh American
television of “quite consider-
able expenditures” and there
have already been hints of an
increase in VAT. The extent
of the costs will become dear
only when we know more
about the terms of the settle-
ment— if there is one— but they
could be far from negligible.

.There is a much wider ques-
tion, however, which seems to
me to be crudat Will Britain
react to the Argentine invasion
and its aftermath by becoming
more nationalist or win it

draw the quite different con-
clusion that it is necessary
to . strengthen international
alliances and international
order? There is a terrible
danger that It will do the'
former.

You can see this in several
ways. Comparisons are being
drawn on the Tory benches with
France at the time of the
return of General de Gaulle.
There is talk of a new mood of
national self-confidence, even
assertiveness. Mr Cedi Parkin-
son, the party chairman, was
full of it when he appeared on
television last. Sunday.

Practical examples abound.
The Tory sniping against Mr
James Prior, the Northern
Ireland Secretary, has increased.
True, Anglo-Irish relations have
not been exactly improved by
the approach of Mr Charles
Haughey, the . Irish Prune
Minister, to sanctions and
Security Council resolutions.

Much' of the fault lies in
Du hHn. But the chances of a
Northern - Ireland settlement
and a further rapprochement
with the- South have diminished
as the Tory Right has hardened
its opposition to Mr Prior’s BUI.

The Bill will go through with
the aid of the guillotine, but
the push has gone out of the
Prior initiative. The Tory Right
tends to favour the int egra tion
of the North with the UK and
Mrs Thatcher does not actively
discourage them. Mr Prior is
becoming more isolated.

Again, there is the case of
Japan. The UN resolution which
Britain vetoed last week was
put to the vote only .because it
had Japanese support — without
Japan the necessary nine votes
would have been lacking. The
word in Whitehall now is that
it all goes to show that you
can’t trust the Japanese. Future
British attitudes in any
negotiations with Japan —
whether on trade or anything
else — are likely to be much
tougher, though a different con- '
elusion might be drawn that it
would have been wiser to have
cultivated the Japanese Foreign
Office more in the first place:

There is also tibe European
Community. Mr Francis Pym,
the Foreign Secretary, patched
up a temporary deal on the
British contribution to the
budget when Mrs Thatcher was
enmeshed with the Falklands.
But the real battles are dtiH to
come. They w £H be much
harder than ever before: the
longstanding talk of “British
GauHism ” and standing up for
national interests has come to
the surface.

Anyone who watched Presi-
dent Reagan's performance in
the Palace of Westminster on
television this week wAN also
have noticed the Sight that
Shone in the Prime Minister's
eyes whenever the cameras fell
on her. Quite dearly the
Alliance which she favours, is
more with the U.S. than with
Europe, especially when
America as led by a President
who shares her own morel con-
victions.

Yet the new nationalism is
not confined to the Tory Right.
It has its mirror image in the
Labour Party, which took the
occasion of Mr Reagan's visit
to publish an open letter to the
President.

Some of its points are per-
fectly reasonable: for example,
its criticisms of Mr Reagan’s

apparent concentration on East-
West issues- at the expense of
North-South. Others, soefa as
the stress on unilateralism, are
not surprising. But, for «H the
references to South Africa. El
Salvador and so on, the tone is
almost entirely inward-fookstng.
It is as though Britain possesses
some superior morel , virtue
Winch should not be contami-
nated by too dose a contact
with allies. What are we to
make of a long statement on
foreign affairs that states no
mention of the Middle East,
especially (this week?

The real lesson, to be drawn
from the Falklands crisis is
quite different from the way
thinking is going in the two
major parties.. It is that we
need more internationalism, not
less; more effective alliances
rather than more national in-
dependence. -

The Falklands is an excep-
tional exercise. Nevertheless, it
would never have been possible
without the support from the
Community on sanctions at the
start, the diplomacy at the. UN
which led to the original sup-
portive resolution, and the
material assistance from the
U.S. It is that kind of allied
support and the improvement of
the workings of interna fckma]
diplomacy which we need to
cultivate.

The question will arise when
It comes to reassessing defence
policy in the light of the Falk-
lands expedition. Already there’
is talk of the need for a larger
fleet and of cutting the British
contribution to Central Europe
should the costs make that
necessary. Yet, apart from the
fact that it would he foolish
to revise defence policy as a
result of one unlikely to be
repeated campaign, there is
also the point that defence is
a business for the Atlantic
Alliance.

Mr Pym, when be was Defence
Secretary, proposed that Nato
should review fits purposes and
requirements. That Is sow a
matter of urgency. Who should
provide which equipment and
for what? What is to be the
attitude to small wars and the
recurrent question of economic
sanctions? In the wider sphere,
what should he the approach to
arms -transfers and bow can the
UN peace-keeping machinery be
strengthened? Neither the Tory
Right nor the Labour Left
seems much interested.

Lombard ;

The U.S. and its
Mends

. . .By Anatole Kaletsky in Washington

WHEN ISRAEL goes looking
for trouble, American politicians
reach for their kid gloves. Thfis
curious, reflex has a standard
diagnosis in Europe— the power
of the Jewish lobby. .

Bat there is a danger in put-
ting too much stress on such a
facfile explanation. For ' it
obscures some deeper reasons
why the Reagan Administration
In particular finds at so difficult
to condemn Israel in its Middle
East adventures — and. why
attempts to build bridges with
the Arab world have come far
down the list of priorities for
aU U.S. administrations, with
the possible and partial excep-
tion of President Jimmy Carter's
The conservative intellectuals
Who dominate the Reagan
Administration’s strategic think-
ing (even if they are often
over-ruled by less doctrinaire
practical politicians when it
comes to implementing this
strategy), regard Israel's pre-
cedence over the Arab states as
a matter of reafpohtik and
principle, not of electoral
expediency.

Ope official, in the State
Department peg it iike this,
when asked, whether the UJ5.
acquiescence in the Israeli inva-
sion of Lebanon would mar im-
proving relations with moderate
Arab states like Saudi Arabia.

“ Are relations really improv-
ing? We sell them A WAGS and
they say we ere just salesmen.
They won’t talk about military
cooperation or the rapid
deployment force. They oppose
Camp David- They just pour
money into toe PLO and ignore
us.”

Now, toe lukewarm response
to friendly U.S. gestures from
countries like Saudi Arabia,
Jordan and even Egypt may be
due not to lack of goodwill, but
to their governments’ own
internal problems. This is
readily conceded. But then what
good wall Rich helpless allies he
to toe UB. if it comes to a
serious crisis? '

There are two strands to tins
robust attitude of “They who
are not for us are against us.”
First is the idea that toe ulti-
mate threat in the Middle East,
as in other regions, is the Soviet
Union. Thus, in toe end Un-
friends may have to be judged
by a very tough standard— do
they have both toe wU and toe

internal cohesion to help toe
. U.S. in an East-West coafronte*
(non?

The converse of this issue Is
even more important: those
regimes that do commit them-
selves to the U.S. must be able
to rely on its wholehearted sup-
port in- times of need. Consider
this comment by the Wall Street
Journal, a consistent platform
for the Reagan Administration’s
more ideological wing, urging
clearer U.S. support for Israel
just after its invasion of
Lebanon.

“U.S. policy makers can never
agree whose side we’re on. . . .
We cannot expect to reduce all
political problems to simple
maths, but we could start by
making it clear that the UJ5.
stands by its friends and will
resist strong arm tactics
against them.”

In times of crisis, this atti-
tude leaves no room for a moral
or legal calculation about which
side to support If does not
mean, according to officials who
espouse it, that U.S. foreign
policy ignores rights and
wrongs. It does mean that such
issues have to be eet aside
when a strategic ally is in
trouble.

With regard to Israel’s
Lebanon invasion, this prin-
ciple, not just toe Jewish
lobby, explains why the U.S. has
refrained from “ addressing the
question of justification,'* as
toe State Department put it on
Wednesday. Presumably it will
continue to avoid tons question
as long as Israeli soldiers are
getting kiHedL

Once Israel feels secure
again, U.S. Middle East policy
will perhaps return to business
as usual. The contending fac-
tions in toe State Department,
the Pentagon and toe White
House will re-emerge. There
will be talk of arms sales to
Jordan, of Palestinian auto-
nomy, even, perhaps, of some
softeidng in the US. stance
towards the PLO.

The trouble is that Mr Begin
will know (as General Galtieri
of Argentina thought he knew
in another context) that when
the die is cast, toe U.S. will
always back him. And Mr Begin
Is shrewd enough to realise
that he can cast that die when-
ever he wants.

Letters to the Editor

The importance of funding students from overseas

From the Partnership Co*
ordinator

One Arup and Partners '

Siav^r am sure I shall not be
. alone ip being infuriated by the-
nuast-academic approach of
I Michael Dixon’s article M ^Wbo
should fund foreign students ? ”
(June 7) ._ Those of us. who have
direct dealings with . ftaei^i
governments, and who have -to
negotiate overseas, know that;
no other single action' an. the
part of the British Government
in recent years has caused more
offence, mid potentially done
more damage to political and -
trade relations than, the
measures taken fey toe present
Government - on -foreign- stu-
dents’ fees. .

In aU societies, certainty not
least in. the developing world,
there is a need to realise the
full potential of -individual’s
capabilities." While one may
agree that there has been an
over~empsh asts — throughout the
World — on pushing the largest
number of people possible
through an educational system

- aimed at intellectual excellence,
there can be no question of the
need for fostering- those who
have a genuine capability for

- .outstanding inteQectaal achieve-
ment. The ,; deweloping world
needs its intellectual leaders
as much as toe developed world.
The UK needs policy makers
throughout the world to have
nt least an empathy with tins
ccumfiryi There is no better way
to induce this than by helping
to educate them. ' .

. The developing world desper-
ately needs many more profes-
sional people than are presently
available. My firm, in company
with many others, devotes a
great deal of time and effort
to helping to develop sue*
people. If however, such people
do not have basic qualifications
which are orientated to British
practice, they will not come to
us. Furthermore, their attitudes
and ways of thought will not
be positively attuned to ours,
even if they are not negatively

Professional people trained
to apply our standards and
procedures, ere a very (native
influence in the development
of British consulting and pro-
ject business in. the developing
world.

- . It seems to me that we need
a policy which encourages and
helps toe genuinely bright
. foreign students to come to toe
UK,- especially those who are
aiming at the professions. This
should' not be considered as ex-
cluding an equally desirable
policy of fostering short visits
to the UK of those concerned
with particular situations and
types of activity. The two
policies should be considered
supportive not alternatives. .

May I ray it behoves ns ill to
strike a stance of intellectual
(or any other form, of)
arrogance in and - to the
developing world,

R. H. Oake.

Ove Arup and Partners*

13 Fitzroy Street, WL

Participation by
a# the staff

i

From the Chairman^

Europe Committee,
Confederation of British
Industry,

■ Sir, — Your report - (Jime 10>
on toe CBI visit to toe European
Commission rightly .points out
toe wide scope of our talks, but
in dealing with two controver-
sial social affairs measures it
confuses by compression. May
I set the record straight?

The 'CBI iS' very, active in
urging more employee involve-
ment and our team certainly
did not condemn toe draft fifth
directive on this subject as
“totally unworkable.” On toe
contrary we betieve that in toe
form in which frris measure
emerged from toe European
Parliament last month it goes-
a long way towards -.providing
the necessary range, of options.
Some improvements . may be
possible by redrafting, but there
has bees usefal ' progress
recently in toe 10-yeawjd
process of evolving an accept-
able directive., •

Our vaew of toe Vrede&ng/
Bavignon proposal for- worker
consultation and information is
far more critical- _ We fuBy
support toe need to inform and.
consult employees, but we do
not believe this is best served
by a. mandatory instrument. The
reason I described it as -mis*
guided " was, that it contains a
number of objectionable
features, no* least the entitle*,
meat in too present draft for.

employees in all sabswfiaiy com-
panies of agroiqi who deem
-themselves- to be affected, to
have extensive consultation
with toe parent company before
management - derisions can be
taken. This would at best put
European firms at a serious dis-
advantage compared with their
TJ-S. and Japanese counterparts,
and wotet produce chaos in
company planning.

It is . significant that despite
the .waiyteg vtpaditions of EEC
member .states In industrial
- relations, toe industrial federa-
tions of toe. Community which
are collectively represented by
UNECE , aiie .united in their
opposition to; the Vredeii ng/
Daviguon >- proposal in its
■ present fonri
J. M. Raisman,

203 New Oxford Street. W Cl.

Easier access to
ixxf ormation

FromDr FL-. WiHiems,

. Sir,— Your, article “Highlight-
ing toe jPrestel weaknesses”
(May 27) summarises. In rather
over-dramatised f Orm, the prob-
lems that most people have with
computerised: database systems.

In toe past, most on-line in-
formation . systems have been
used solely by trained informa-
tion scientists. - With Prestel,
Britain has. led the world in
bringing such computer services
out of the specialist library into
people’s offices and homes. This
lead has now -been followed in
over 20 other countries from

Austria to Venezuela. Prestel'
has one of the largest commer-
cial database, with .over 220,000
pages, increasing by nearly 5,000
each month, many of 'which
change every few minutes. In-
formation search is thus an un-
deniable problem; one which we
could not expect. to solve com-
pletely iti a few years. Books
have been around for 300 years,
newspapers for over 200, and
most of us have spent a life-
time, including years of formal
education, learning how to use
them, yet few manage 100 per
cent success when searching
through printed words for the
information they need. It should
thus be no surprise that for
toe electronic form, information
search falls below 100 per cent
success rate: our researches
suggest that- 70-80 per emit suc-
cess is a fair average. In an
attempt tb improve this rate,
Prestel will be introducing an
experimental “keyword" system
this summer.

We must, however, disagree
with Professor Scott Maynes that
keywording will prove a radical
improvement over “tree” in-
dexes. The source, a large on-
line Information service in toe
USA, used to rely solely on key-
word. search but . recently, in
order to make information
access easier for their home
users, they have introduced a
great innovation, Prestel-style
tree indexes! -
Dr Edeiyn Williams;

Prestel Headquarters,

British Telecom nm meat ions.

Telephone Bouse,

Temple Avenue, EC4k

The workers’
struggle

From Mr T. Symonds.

Sir, — May I comment Oa the
letter (June 4) from J. E.
Mortimer, the general secre-
tary designate of the Labour
Party? He overuses — as do most
Labour Party would-be intel-
lectuals — the word “radical
when referring to the honour-
able straggle by workers over
the centuries to gain a living
wage. The tradition of struggle
by-toe-people-for-tbe-people has
certainly centred itself within
what became the Labour Party,
and it took the form of with-
holding labour, certainly in toe
factories.

But the intellectual base of
radicalism has always been in
toe Whig and later Liberal
tradition, not in the . Labour
Party at all. Indeed, the hardest
people to watch in full egali-
tarian flight are toe thinkers
trying to get to grips with toe
Labour Party history of non-
intellecfiuaiism. I think- Denis
Healey is high on this list

The fact is we are witnessing
the most devastating attack on
the “working (ie, semi- and un-
skilled') class” ever known. I
doubt if toe class as a class can
survive. This is not to say their
offspring will not survive, but
they will enter the middle
classes (ie, skilled or theoreti-
cal) to do so. The reason toe
Labour Party is breaking up is
that toe middle-class thinkers
and theorists are sticking with
it, except for the ones driven
ont by savage attack on them,
but toe traditional working-
classes in desperation are look-
ing for an alternative party
within which their survival can
be guaranteed, if possible.
Because those voters have been
sturdily conservative the SDP
will have the hardest task to
become a radical party. In
Government it will probably go
for Keynesian economics (now
nearly conservative as a
system of managing an
economy) but keep to conser-
vative social policies.' Tins is
why the radicals will vote for
Dr Owen, the cautious for Roy
Jenkins.

But either way, toe SDP wffl
be good for big business, toe
Liberals for small business.
The Alliance has a momentum
of its own.- And the radical
tradition in British history so
claimed by Mr Mortimer may
actually move into what might
become the rump of toe -Labour
Party, dismissed . by the
majority vote from power,
probably pleading for propor-
tional representation.

Tim Symonds.

The Mill Houses
Burfordt Oxfordshire < .

Etedridly Supply Commission, South Africa
Financial Results 1981.

Bakmce sheet

atfl Decanter 1961

ROOD |

1981

1980

Rod nek.

10143888

8219195

Sttw and mataUs. ...............

306079

245147

Oiha-inHsirataEais.. m . M .*.p

362401

294780

CHitrtllltoflftawliMaaia— him

208863

195883

11021011

8BS5005

financed by

imsaMafraMacdt..........

8715459

5329790

Local re^steed stock, bond bates

raid fflrect pkaarm ........ .....

.8155498

3272754

8424889

285591?

4942734

3768986

1427380

1200267

iL j *: f X : fuWm

advances....

345345

360537

CnmrtMflfiBL........... ......

490532

437352

VU not

7205991

5787142

3815020

3187883

11021011

8955005

Income statement

tor It® year ended 31 December 1981

- hooo |

1981

1980

Safes of efedrkSy.

2140889

1772000

Operating expeniJHmB. ............

1061051

836308

Nefopenjlfrjg income....

ions s»

935694 i

less Loan cterge&................

720834

606381

- .359004

329333

1 wfM ‘ 1 '1^1 - ■'!

M195S. .

438378

427300

■■'Pfc ?!>i Pi JKll i •WiTiWi lit!

(77374)

(57963)

\\MW' SvifT. iJHKfeS*

083851

79602

Accumulated de&Sal

end afysat

<05739)

(18365)

Statement of some end appfarion of tends

R 000

1981

I 960

Soareaiftads

-

FtateOwantalfateBBlfr..........

■ 873817

871404

1198885

78834 T

40200

73060

Otb > M.aH.niMM,.....iH,n,

8574

3028

1535833

TWXJ UK^HOLak ■•■•••«»■«»•

Increase insures and

1950845

1448828

materials

Defemtaexpsxftraanddepaste

80832

21421

■tasecuratuturefoflisuppfes.......

40373

41455

Increase mhousing loanstD

employees.... «...

19690

6626

gesavafoodexpanam.™.

31218

19393

2102868

7535833

RlOO«US9V}fl9ri3iDBceaiberm

"Ihe growth rale in Ihe demand for elecfricily in
this country remains high. Present irafications
are IhatSoufo Africa wffl need about 35 000 MW
of installed capacity by T990 (nearly doubts our
present cagacily) and teout 70 000 MW by toe
year 2000.

- Jan H. Smith, Chahnm of Escom.

Escom - the Escfricity Supply Commission

- supplies morethan 93 per centofthe
electricity used in South Africa. This is just
under 60 per cent of the electricity consumed
oh the entire African continent.

In 1981 Escom's elecfricily sales exceeded
93 000 million kW.h. Consumers are
supplied throughout the country by way of a
national transmission grid sysfem. Escom
also exports electricity to neighbouring
countries such as Botswana, Lesotho,
Mocambique, Swaziland and Zimbabwe.

A growth rate of 72 per cent in kW.h of
electricity sold was recorded in 1981. Overfhe
past 30 years, Escom's -elecfricily sales
increased at an average rate of 8,8 percent
perannum.

Atlhe end of 198i Escom had morelhan
16 000 MW of coaMfred, hydro and nuclear
plant under consfruciion, all of which will be
commissioned by 1989. The construction of an
additional 7 600 MW of plant has been
announcedsinca

Becfriciiy is fostering growth and economic
cooperation between all nations on the
Southern Aiiican subcontinent. Escom is
committed to provide an abundant supply of
elecfricily so lhat economic growth wifi not be
impeded now or in the future by too cosiiyor
insufficient supplies of electricity.

O^teofBcom'sfuBGnnuttfi^ioitffiici
■financaal statements are obfanabte on
request from ttie Public Relations Officer,

p.a Box 1091 , JOhannesbuia^OO,
South Africa

20

Financial :/

■:i
. ;J

Companies and Haricots

UK COMPANY NEWS

Hill Samuel Group profit
climbs 42% to £15.99m

J. Finlay
advances
by £1.76m

Investment income helps
Northern Foods to

_r- •

r*»sr. i .

PoMand
over

BY AllAN FRIEDMAN

AFTER-TAX profits of the Hill
Samoel Group rose by nearly
42 per cent to £15.99m in the
' ' year to March 31 19S2, an effec-
* tlve doubling of the profit level
- ' over the past two years. A final
i dividend of 5.5p makes -for a
r. total of 8p, against last time's 7p
Z per share.

r The lion’s share of profits
i- continue to come from the
merchant bank, which showed a
~ 15 per cent increase to £12.5m,
while life assurance and invest-
ment management were up 81 per
cent to £2J8m. Employee benefit
services improved by 85 per cent
to £2.07m and the insurance
broking division registered a loss
of £628,000, down from £1.4m
last time.

Shipping services, including a’
three-month contribution from
the newly acquired Wallem
group, were up to £2.5 rm a
156 per cent rise on an adjusted
basis.

Underwriting agencies stood at
£368,000 last year, against
£247,000. Central costs rose
73 per cent, however, from
£2. 17m to £3.6tn. Of this increase,
interest accounted for around
£lm. while new incentive
schemes and overheads com-
prised the remainder of the rise.

Fully diluted earnings per
share were 39 per cent higher,
at 23^Z4p against 16.73p. The
group figures also include an
extraordinary credit of £236,000
(£1.55m).

Consolidated shareholders'
funds at year-end nudged above
the £100m mark, to £106 -5m
(£91m) and tbe group balance-
sheet now stands at £2J5bn
.(£1.75bn).

The HiH Samuel results show
an overall improvement and
were helped by the depreciation
of sterling against the U.S. and
Australian dollars. Negative
factors Included the depressed
state of the shipping and UK
insurance markets and un-
favourable conditions in
Australian and South African
banking.

Mr Christopher Castleman,
group chief executive, reckoned
file weakness of sterling added

HIGHLIGHTS

Lex looks at the markets where a weak- day left, the FT
Index down 15 points over two trading sessions. The col umn
glances at the disappointing results of the 1 -Argyll .Foods offer
for sale by tender which was on!y 26 per centcoveretti: tt also
examines Northern Foods ■ which has reported for the 1 six
months to the end of March pre-tax profits up 30 per cent from.
£17.2m to £20.7m on turnover 13 per cent ahead to £410mi. The
advance was thanks to a higher contribution from the U.S. and
consolidation of Avana. The column also considers Hill Samuel
where, for the second year running there has been strong profits
growth amounting to 42 per cent to £1 5.99m after tax. But the
easy improvement routes have now been exhausted and the
going is likely to get tougher from now on.

about 2p to earnings pec share,
while difficulties in the
Australian and South African
markets lopped lp off, making
for a lp net gain on external
factors.

The Sooth African and
Australian banking divisions
contributed around 25 per cent
of banking profits. South
African profits before tax were
lower but a reduced tax charge
resulted in net earnings 7} per
cent higher.

In the UK, earnings from free
capital resources rose by 10 per
cent, according to Mr Castle-
man. Treasury operations cot*-'
tri touted a 16 per cent higher
profit and commercial banking
was up 50 per cent despite
“ razor-thin margins " on com-
mercial lending.

Investment banking improved
on an overall basis but some
losses continued od Eurobond
activities. Hill Samuel has de-
cided to cease making a market
in Eurobonds and is concen-
trating on small trading
activities, particularly those
associated with issues the bank
has co-managed. “ It’s crazy for
a house like ours to think we

can run a book hko the major
traders,'' explained Mr
Castleman.

In UK corporate finance, com-
petition continues and the bank
is forming a special ream for
smaller company finance. "We
are witling to have a go at other
people’s clients, ” said Mr
Castleman.

PRE-TAX profits of James Fin-
lay, international trader and
financier, advanced by £I.76m to
£13.16m for the 1981 year on
higher turnover of £99 J.6m, com-
pared with £95m.

With stated earnings per 25p
share, excluding extraordinary
items emerging at 13.4p (ll.lpV
on a net basis and at 14.1p
C11.4p) on a nil basis the divi-
dend total is being effectively
increased from 4.17p to 4.5p
by a second interim of 2.5p

Full-year taxasle surplus was'
after interest charges of £332m
and net realised exchange
losses of £196,000 but included
net gains on sales of invest-
ments totalling £1.52m and a
share of associates profits of
£679.000 (£389,000).

Tax took £4. 14m (£3.8m) and
after " minorities .. and .. extra-
ordinary debits this time of
£l.l7m (representing a write-
down in the carrying value -of
a long-term investment, Tata-
Firrlay, amounting to' £789,000
and a loss on the closure . pf a
division of £380,000) the
attributable balance came
through at £6.64m (£fi.4m).

ON A 13 per cent increase in
turnover from £362m to £410m.
Northern Foods was able to push
pretax profits for tbe six months
to March 31 1982 ahead by 20
per tent : from £17-19m to
£20.68m.

A significant part of tins im-
provement relates, to a rise in
earnings from investments from
£813,000 to £2. 99m, bat this in
itself was partly offset by a cHmb
in interest charges from £426m
to £5 .55m,' as a result of
fi nancing the group's larger in-
: vestment in Avana coupled with
higher UK and U.S. interest
rates.

Estimated profits from tbe 20.5
per cent holding in Avana have
been included in the first half
figures.

Group operating profits for the
six mouths finished . £2£9m
higher at £2&23m and, with tax
. taking £4.77 tn agadnst £4.Km. net
proffis advanced from gtg&tm to

£15B0m. Stoted earnings per 25p
share expanded from 7.13p
(adjusted' for the one-for-five
rights issue in November 1981)
to 8-1 3p, while tbe net interim
dividend Is being lifted from L8p
to 2p. Last year a total of 5p
was paid, da taxable profits of
: £33JI3m.

Minority profits for the nr
ter nn p eriod rose from £298,000
to £328,000 but there were extra-
ordinary credits tins - time ' o f .
£189,000. This left the
a ttributab le, balance up from

. jGreat' POrthmd Estaties, th B
per stare have risen from in property, ■ investment ^ group,

pre-tax ’.-revenue

-increased, -its

adjusted 5-36p.t0 6.5-Sp. _ _ _

.Tbe group's: maid', activities £rom £10£m to gtflj Siw In. ft*
fall 1 into footr-categorfes -wfttaa. . year -to- Starch- 3Tt 1961' 'ibis
the -food ^-iudtstiy; - fttiAfc and- represents b bettea‘ Thaaferecast
dalry product . niHUzie T and result "far tbe
baking, meek .products bred brew 1 rights issue last December «*T
J — T * directors saw ihey . expecS

ing. lt operates the third largest
dafiybtasdnesslnthe UK/sopply-
tog mUkrbaeed products; to-
gether witih brfead and' meat, to
com pain ear wttch tod ode Marks
and Spencer. -

Last
£41m

in line with .the £8.08m^retforted

for the first' sir rnhttftvs ■

As preeUctwI^sr toatitime, ft, .
final dividend . tar. 4tt'-V

ment of 28 per cent after the
payment of pre f ere nc e dividends
totalling £5,000 (same).

Tbe ordinary interim absorbed’
£4.1m compared wHh £3-03m,
following which retained profits
saw a £2i44m expansion at
£lL65m.;

On a CCA basis the profit be-
fore tax is "shown- at £17.61m.
against £14.0?m . and earnings

-initially- serve to -reduce borrow-.
ings and provide the necessary
financial fiexibilky 'to enable' the
group vtotake ."'adrontage of.
opportunities - • for farther

acquisitions as and when they
occurred: Capital . expenditure
of £37m was planned • for the
current year.

• •^•.'"'SAe'Lwc .

Tool division hits 600 Group

On the shippmg side, .the
profits do not include around.
£0.5m of finance costs associated
with the £12Am purchase of the
outstanding 75 per cent of
Wallem. These charges are con-
tained in central costs.

Mr Castleman agreed that
Wallem " cannot do as well this
year as it did last year " but
said be expected to see main-
tained shipping profits on a pre-
interest and net basis by moving
Into agencies, ship management
and other activities.

Commenting - on merchant
bank disclosure, he-, said Hill
Samuel bad no intention of dis-
closing the annual charge related
to bad debts, but would review
—subject to EEC directives — the
idea of disclosing transfers into
contingency reserves.

See Lex

• comment

Improvement in most activities,
inducting a slightly " better
result from the tea * side,
enabled James Finlay to exceed
market expectations with a 15.
per cent pre-tax advance. Tbe
move away from tbe cyclical
plantation interests, with- recent
focus on North America and oil
related businesses ' should
smooth out future performance
patterns. However, following
further investment gains from
the sale of LASMQ shares three,
is now little meat Left, on this?
bone, which is down to some
300,000 shares with a current
value of around £lm. Based on
present trading the company is- :
cautiously optimistic. But yes-
terday’s lp rise to 93p left the-
Shares at more -than 50 per cent,
discount to net asset value. Save
for a revival of speculation
about an. offer from 'the
privately owned John Swire
group, sitting on almost 30 per
cent of Finlay, real excitement
remains, in short Supply.

THE OPTIMISM expressed mid-
year by Sir Jack WeLIfogs, chair-
man of tbe 600 Group, of a
-slightly better second half has
been borne out
However, . . -although ' taxable
profits for the second sir months
edged ahead from. ? f2.4lm to
£2.4ftm toe total for tbe foil year
to March.#’ 198Z was: still behind
at £4.40m, compared with £4.76m,
with the machine tools contribu-
tion sharply lower.

The dividend total' la

OT B p > n i tf again included a . share of profits of

overseas «.

achieved r ecord results.

; The group. took further action
M at considerable cost? to reduce
.the output *of' several of its

one-for-six. scrtol-tesuci tt -to.
posed . and vihe ■; tore3o»?> are

? projecting . maintenances -of - / ft e

level,, of .

increased capital Joe tteiterreht
year. -Vvc'^r

Gross . rental ' toed to# -lor?

12 months under jeHcw '
.amounted, to il439m -(£3245^) •
Revenue was', after a charge'trf
£180,000. for exceptional rrapiire

of £6 r 55m {MSStoJ. c
' .Earatogs per aojv-^u^ijL.

at CL2p (5^jO a* Sri-
deads co«LflLa7m?fl exthij {1 .

associates, which, rose. - from
£657,000- to £1.32m. , '

Tax , paid totalled £^93m.

m am -

reorganisatioa
scrap depots' and this, together
with an upsurge in demand in
the last- smarter, .enabled the
sector t<> - achieve a. considerable

tatoed at ££5p peT}2?p .share by improvement' over -last' year.

activities “ax. toe prospect of a £8.85tm SGnofrities' accounted tot 5 SffiSSLJ 11 •
recovery is the UK became more £305.000 (£364,000) - and ‘ .after opmeitt. ^ j . .

remota**- *’ • extraonfinaiy debits of £L59m. ; Tbe-entire portfolio

'Vi,— t,. Lll ^ (£LJLm) .there was an attributable, ; at. £27R60m : by: •

'toss of £189,000. against a surplus: May and Rcwfteh^miSSS
organlsatioa continued to the ^ a^^'fronTwSch orritoary

dividend payments absorb. £?^6nt a surplus of £63.62m
(same). • • been ;. ! transferred

‘A breakdown of turnover and roserv«. Net assets )ier ;
trading profits (£S.14in, against MmTdt.31 totMled.£24te.-
£4.llm) by- division shows.-: ^iron m
and steel products ami services . . ywnniefii
£46.69m (£49.94m) and £183,000 - The market’s _

tm: groups volume manure ^ k 5f > \ ina S to ^g^ Gre ®f ESttfesT ^

tinwj nf ot^mfiarrt marking tivrviR £65.95m (f7L41m) and sending the shares dowa iOn-d

_ - . _ and worldwide recession with a - *®d sCtoScm S099m do with the pte-taX . ^,

Turnover of the group, whose-, considerable reduction to results. ( £27 l,rfl ) and £807,000 (£Llm). whfch showed r tL liseftil Ai^wr
interests mclude the manufacture A “sizable” reduction-in profits Farther moves by tHe _ group . cent increase. s Tho {jeiuKai'was^

of machine tools, engineering of . the engineering, division was into higlf technology' during the the anncHincemeht of

products and series, materials mainly due to' poor results on year included the formation of a per share of 226p. 20p less
hanAifno a«H rrUtai mmm» <-« * rranp man afacture- owing tb the new - company to , consult ' -and. most . prior

a same- again final of- 2-81p.
Stated earning: per share were
3p (29JZp)' before jertraordtoaiy
debits. On a nil-Basis they were
8.1p (10.4p before-taking credit
-‘for-stock relief to respect of pre-
^ous years).

The machine: . tool division,
helped, by the overseas com-
panies, continued to-be profitable.
Tbe group’s volume^ manufacy

3 million

Vi

sections q

Extracts from the Chairman’s Statement, 1981

was another successful year for
BDPA. The number of onr subscribers
increased by 12% <m the modi greater base
fiat was created a year ago and at the end cjf
theyear was toudnng 14 million. Indeed,
takmg dependants into account, there are
nemtferthe first time, 'over 3 rrdffion people
(same 759& of all those medically insured)
covered by BUPA health insurance, and
these include some half nriffion newcomers
during the yean It is agnifkant that nearly
two trarda of these were individuals who arg
paying for their health cover out of their own
pockets.

OurgrowthiTtf^iririicnl^
praaent ecoBunnic chznate, continues to be
satisfactory, although inevitably it was much
lower than to the previous year; when there
was what we all knew to be a wholly
exceptional increase. It is unfortunate that
Bomecouvnaentators chose to regard that
year as typical and to base upon it forecasts
of thgflifaire demand for private medicine
that were totally unrealistic, even gonrn- so
for as to assert that by 1985 some 32 mmkm
people, nosriy one quarter of the population,
wwild be privately insured.

This exaggeration has had three disturb-
ingresrilts. First it encouraged a small, vocal
aiia unrepresentative minority, who as a
matter of political dogma, are opposed to
independent medicine, to chum that the
private acute sector was now competing
unfairly with the NHS for scarce resources,
partiaiariy for nurses. In foct, as against
the NHS establishment in England alone of
about 190,000 qualified nurses,- there, are in
the private acute hospitals in the Whole of
the United Kingdom only an estimated 7, 000,
and this figure is almost equalled by the -
number, 5,673, who were registered as
unemployed at the end of the year .

Secondly commercial insurers, mostly
from abroad, have begun to move in to what
they seem to have believed was a very large
and rapidly expanding market Some are
doing so by quoting wnat appear to be loss*,
making premiums unSkely to be maintain-
abteafim*themitM business has been secured,
especially against the background of similar
difficult conditions in their own markets.

Thirdly; private developers have begun
to plan and build hospitals on a substantial
scale. Kiere are dear dangers both that some
areas may become over-bedded, am! that, the '

Total people covered

On tbe international side, our operations,

subscribers overseas

Benefits paid to BUPA
subscribers *

Total income

r

.

Nei assets

is not readily available. In- addition our
“Worldwide Travel” policies cottiimie to
prove very popular wito our subscribers.

Accounts

. Withanimrease oftr^^million,

' subscriptions earned reached anew record of
£143 million in 198L Benefits also readied a
record level of £142 mflBon aid^ were
supported byjhe.SifoBcriber Benefit
•Reserve. Our policy of using; pat of tins
R e s e rve , w h i ch wasgs fab fishe d in order to
improve benefits to subscribers and to
moderate increases fosobscriptitm rates
over the last few years, has therefore been
fiffiy ^ ^ ^

tranter to reserves for tbe year amounted
to over£6-mfilioa.' The investment and
ronmntmestsat3IstDeeeinbei; 1981 In our
own hospital development programme and
to other providers for independent beds
amounted to over £46 mlQioii.'Ibtal reserves
for the Group by theyear end amounted to
£73 minion.

Chief Medical Adviser

£195:009,000

the rapid growth in the cost of benefits, and
also an unexpected rise to the proportion of
claims made, renders substantiaLmcreases
inevitable. Indeed, although the accounts .
show an adequate surplus, which will of
course be used for the benefit of our '

subscribers, they also disclose amodesfc ; -
underwriting loss which is more than
balanced by the after-tax inenmefrom our -
investments and other activities. Higher ■ -
subscriptions are necessary if we are to
remain viable and provide the services which
our subscribers require and expect. . „ .

Health Care -

These services include the provision of

and other services. Wberethishashai,

it has inevitably led to higher benefits being
claimed by our subscribers and this In turn
h as pot pressure on our subserrotfon rates.
It is not surprising that some of our large
subscriber groups have beoomeso concerned
about this that they have begun to advise
their employees not to use such hospitals
wh e re reasonably priced alternative
faaKriesi rrf high st a ndard fq-p avail a ble.

Limited has continued to build arai equip “
modern hospitals to ensure that facilities are
available, particularly to our own sub- -
* BcriberB.atnpa&ftw» chargeal Mmrihgg fcw
and. Cardiff are already, open, and BusheR. _
tbe TVIrral and Hazpcbden are well under

. .. slmbeensubstaiitial growth in onr
health sereening^ctivities as the importance
of preventive medicine becomes meffewiddy
recognised, and in additio n to oar rnmnineifo
and womenb units in Lomion, We can now
offer M fac ilities in Manehestec Notting-
ham, Binmz^tomn, Bnstidand Glasgow^

counsel ofso eminent a Consultant will be
of inestimable benefit to the Association.

Vfe are much indebted also to the other
members of onrifisttogidshed panel a£
specialty advisers.
RdatwosbipwfihtheNHS

Many otour. new enrolments are coming

from the shop floor in industry and from
other national institutions such as the police,
fire brigade, local Government and the civil
service. know from this and from numer-
•ous surveys of public opinion that health
tosurance fe no longer regarded as anexeco-
•tfre“peri^-ifiteverwas-but isnow widely
recognised by all sections, of the coimnruiity
as a wise andprudenfc investment,
promoting efficiency and good industrial

of mind for subscribers aSS^^n^S.

I beHevetbe time has nowcome to remove
the Issue, of private medicine from the
political arena and to take steps to ensure
. that the public and private sertaxs work
— together in fri«Kfly co-operation in order to
■ provide the mtuamum advantage to the
. coos umerb y a planned growthbased on the
co-operative exchange of information "^diere-
" -by rach sector can^nplanmit the other
The positive attitude of tbe Gover nment
towards this problem has been ofconsider-
.abteencour^emait toua and the restoration,
oftbe tax concession granted from April

Karrad-. Tttrnfmnm for as long awp ns^ih lt* }>^f f

which perform a most usefol service

hospitals, industry and jKivate individnafe.

for {hose whose subscription is paid by their
company and whose earnings are betaw the
threshold Ievd,'isvery wekxuna.

SSrd April, 1982 ytieoder^Ckainmn

BDE&, Provident House, Essex Street, T imdon WC2R3AX. 01-353 9 4Si

handling and ntetal recovery, fell

back-from.X14A52ni-.to'£l43A4m. depressed home market and
. . rCommentin g tm.tiie results Sir despite the Sooto 'EaBtAsia.'com-
Jaric says that the cqntimting low - pani^ JiavhSg a record year,
demand nr the — home- market. .The- pre-tax -surplus; was i.sfter
made it certain that profits would ^ deductions - for depredation of
not improve on the tow level of .£3^32m <£3.03m) .and interest
the previous year,' although the charges of £2.65m (£2^5m). It

DIVIDENDS ANNOUNCED

-and most _

supply technology on ~ flexible' figure, may^^ave been
manufacturing Systems. ''.In by _ fee .impaot of* the' _
December it signed - a lO-year ex- ' devah^ertiprogranfotoifcffihd
elusive manufacturing and d tetri- at the. time lof lTeeeaiflid^ Ebii « •
button agreement fear the UK and rights ' issue. Moreover-
Eire with Fujitsu Fanuc of. Japan values in the' West End
for Fanuc robots which include Ifee - company - has
-the worldwide' rights to export ebueenteation of praptee&^d :
robots when incorporated toto -not been as buoyant as.thiae.fo-
group machine tools and other the Gily. Gteat PortBraff'iS^V
products.. The group toten&s to tation M tbe ' ultimate* -ddiSS '

Date

Corre-

Total

Total

Current

of

sponding

for

last

payment

payment

div.

year

year

0.5

Aug 11

0.33

a?

0.5*

4.25 • -

Aug 1

3.75*

T

6.5*

4.5

July 29

4JS

6.5

6.5 -

5.15

Aug 27

4.9

798

7.5

1.6

July 30

1.59

3

2.6ff

Nil

_

3

2 -

8 .:

.inti

0.5

July 29

0.5

-3--

inf

2 J5

July 28

2.17*

4.5

4.17*

4

Sept 2

3.33* .

5 .

4.17*

..5.5

—

A8 -

8 .

7

1.8

Aug 6

2.5

3.6

43 .

3.8

—

39 .

5.63

5.63.

.inti

2t

Aug 27

19

—

5

..1.55

July 16

1.27*

2.3

1JS9*

2J5

July 29

L5

2J5

1.5

.tot.

2.5.

Aug 11

1.67*

6.67*

2.91

July 30

2.91 .

5.25

5^ff

.int

0^

— -

294

*

4.48

3 JS .

. —

3 .

6 .

6

0.8-

July 16

—

-

205

Aug 4 .

. 40f

45jl

.401 ! .

Applied Ctmipt
Brown Shipley
Chapman Inds.

A; Cohen

Electra Inv. ...

B. ElUott

Fair line' Boats .....'....inti
Finlay (James) sec. inf
Great Portland ...

Hill Samuel Gp.

LCP Holdings ...

Leigh Interests ...

Northern Foods inL

Plysu

Rolfe & Notan
Sid] aw Group ..

600 Group
Sonic Sound ..

J. W. .Spear & Sons

Utd. Computer
Vlakfonteln • ...

Dividends shown pence per share net except where otherwise stated.

* Equivalent after allowing for scrip issue. fOn capital
incre&ed by rights and/or acquisition issues. J USM stock. 8 South
African cents throughout- If 12 months to December 31 1980. [| 18
months to June 30 19B2.

form a joint venture company,
with Fujitsu Fanuc tomanafac-.
tore and distribute robots.

CCA pre-tax profits were
£18,000 £18/100 (£595,000 loss).

comment

steck-to (the sector to'rednfBfeed
h y the arrreht level of
a .nogUgible s peM efflit.- Ijffle
flares yield AS. .jec.ccnt, sjjbd
toe ? sectbr 7 average, hnt J6pM

. . sh^reholdera who-, took up^
^ - . . .rights issue prtbe of 163p mafi bc

pe 60p Group ^ "^ P^ feeltog sdmfl dfaappototo§S “
dividends out of reserves for the- the momehL “

last -decade at least The com- - .--v -r -
party has pushed (6rdiig3i‘.'the“^
recession with the aid of strong
overseas orders -ahd- strict cost
cutting; but today the machine :
tool and metals businesses are
still not much fun. The main-
tained' dividend seems to under-
line the company’s confidence, to.
its new venture into robotics and

r^rr-

Chubb S:A.

Chubb-- Hokllugs, -the 71.7 per
cent Sohtb African subsidiary of
Chubb and Son b£-the UK, raised

other exotics, rather than hint ait Its operating profit -from R3.4m
an early recavery%of - its-, mhto '{£L75mK to JMrAhvfor the year .

markets. In the meantime, toe
company says, it h«rho worries
about its balance , sheet^and Is
clearly capable of jfosorbing more
bad weather while . it develops
its new. lines of business. 'With

the prices down 2p to 71$, share*.
‘ s kept

holders are being kept wjumwith
a comfortable yield of mqre.'toaa-
II per cent.

to March 31 1982,

-Turnover^ ; rese rR394hn.\

(R31J2m). . } Competition conv.
ttnued - and.^tiiCTe .'wafff A decline

to demand towards '-toe end. of.
the financial periocLf - ;- ■'-• - -
/Che-. . -dividend y-.- is being '
increased to-27.ccmts- (23 cents)
earning^ rose to^ 52^ cents (iff
cents) a share. *' *.

Sir Robert Clark makes the following
points in his Chairman's Statement:

• Group profits aftertaxation have doubled ova"
the last two years and for the year to 31st March 1982
were at our highest level of £15,991,000, compared
with£IU93XKD0 fertile previous year .

• Fully cfluted earnings per share rose by 39 per
cent from 16.73p to 2324p.

• Dividends per share increased by 14 per centfo
&0p neiare recommended, compared with 7.0p net
for the previous year..

• AD divisions in fhe Group contributed to the
growth in earnings.

• Consolidatai shardiddas 1 funds exceed
£UX)mionfor1hefirsttima

• Consolidated balance sheet totals exceed £2bn
forlhefir^time.

• THe Groups shpffngsmnces wot expanded
durjng.the year by the acquisffion of VfellemA
CompanyofHongKong: .

• To marie KsKOth year; the Group launched its
Anniversary /Wards of £150, 000 fopsmall UK
manufediBing companies showing achievsnentaid '
partiafe-preraste of growth.-

l¥aifitafiiertaxation

'VfeartoStSMarch

1982 : 198L

■ -• .. .» ■

£000 . £000

Merchant bankirg'

Disclosed banlong profit

: 12575, 10678

Investment resets

(74) 21S

. . .I250I .10,396

life and inv^inent

. -management: ,

2831 1J563

Employedto^ .

V ' • ■. - . •

^services

2068:: 1,120

- Inkranc^bfofeng" /

’ (628) (1400

Sfnppir^sen^es. .

2491 ' ; 974

UndeniwffiagagaJdes-

369 : 247

. - ' .

12632 12^9

; LessiOentraftbsts - =

jrxduding Interest . \\ ;

3,641 2106

/•-I

Profit for liie year .
after taxation but before
extraoftlmaryft«m ■

Disclosed eamlr^s ' A V.^:
pershare 19^2 . 29a

: AcbBlr - 2333p- 17j37p :
'Egtied ■

Extraordioary items ^ :‘.V- v-

1293

. V .

236 1552

a ft er taxat io n and

16*27 12845

■ii

QytecffliBBqiattaidjrpcDMllsccnMningriieClaftiiafeSfaiaiientifiiMrcMliaoUafcartaBIteSeaghqp'

Hill Samuel Group PLC
100 Wood Street
London EG2P 2AJ

r nrv r r

T

u

Financial limes Friday; June IX 1982

’eat ^

,r S

r _ Ijij 1

’ ' «* -V#,

1" • » ' ■

- . ’ * *■, .• *.'

• V ■. ■ ; ■*.»

,;•• -Vt^
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ADVERTISEMENT

and

W E. F. MANAKHOV,

TRMXStEPRESBCTATIVE OF liffilJSSJl. IN THE UK SINCE lfK

' •' • r7‘ :T » ^
••... ’--t:

>fnment

. * -u> .

• t’ *■ «■

’=

. : i

Isiihb

di aiu-jd i .

The second baHof the 1970s
1 was characterised by a signifi-
cant growth of trade and other
- forms of economic, co-operation
between the USSR and the
“^ UK. British firms 'and Soviet
‘ foreign trade organisations con-
siderably expanded ■ and

* strengthened their ties, began to

■ put more efforts' in finding new
; fields -and forms of trade and
; economic co-operation, in using

to the best advantage scientific,
technological and economic
potential in trade exchange as
-well as other resources and

* possibilities available in both

■ countries.

It is worth mentioning that
the agreements reached at the
!■ Soviet-British summit talks in
Moscow in February 1975 were
a major prerequisite for the

i - . development of Soviet-British
trade. Among these agreements
— fine Long-term programme
for the development of econo-'
mic and industrial co-operation
between the USSR - and the
UK and 'the Soviet-British
intergovernmental credit
agreement signed in 1975 with
a view to provide the necessary
financial basis required for the
realisation of the Long-term
programme.

As a remit of the successful
development; of trade the
share of the UK in the USSR
total turnover increased from
1.8% in 1975 up to 2.3% in
1979, and in the' USSR turnover
with . . developed .. capitalist
countries — from 6.0% to 7.4%.
The record level of mutual trade
registered in 1979 exceeded
l,90Qm roubles.

On the whole durin g the 10th
five-year. 1 plan period , of the
development of the USSR
national : economy (1976-1980)

- the turnover between the USSR
v and the UK - amounted to
7,800m roubles as compared
with 3,700m roubles- In the pre-
- ceding five - years. Moreover,

- the rate of growth of British

t rts to' the USSR consider-
exceeded the growth of
it exports to - the ■ UK -
this period we imported
the UKvarious machinery,
(equipment semifinished pro-
Iducts, raw materials and con-
| sinner goods worth " 3,200m.
roubles (1,100m roubles ■ in the-
19th five-year tptan- ..;period).
The delivery of madUnery aud-

equipment ^ ft no for the indus-
trial projects under construction
and operating made up over
1,000m roubles. At the same
time the- USSR exported to'
the UK goods to the value
of about 4,600m roubles during
the . above-mentioned . period
(2,600m . roubles in the 9th
five-year plan period)'. .

Different types of Soviet 1 In-
dustrial .equipment, cars and
various / domestic . appliances
were delivered to the. British
market - The export to the'
UK of our traditional goods,
(timber . products, oil, furs*.:
etc.) rose noticeably during this-
period. .

Economic Knfa

. ’While speaking of . the:

. develbpment of Soviet-British
trade • in the years since' the
Moscow 1 .summit, talks, it is
necessaiytd stress that the prin-
cipal feature of this develop-
ment lies in the fact that trade
between the two countries has
assumed a large-scale and tong*
.term nature and new perspec-
tive forms of the trade and
economic cooperation have
achieved an essential develop- ,
menL In particular, co-opera-
tion with British firms on .a
compensation, basis also made
good, progress.. _ ■

It is worth mentioning that
production co-operation . of
Soviet . . enterprises and

organisations, with British
firms has reached a certain level
but not a desirable one.

We look upon this form of
co-operation as one. of the most
important and deserving the
primary attention. . The agree-
ment on- guidelines of co-
operation between the USSR
Ministry «f Foreign Trade and
British . .company “ Northern
Engineering .Industries” signed
in 1977 was a .remarkable
example of such cooperation.

The ten-year General Agree-
ment on : Co-operation between
Soviet foreign trade organisa-
tions . and Imperial . rihAmira?
Industries . Ltd. _. in mutual
deliveries of diemicals signed,
in November 1980 is being im-
plemented.'.- The .-agreement
envisages co-operation' of. the
sides jn. -marketing , and pro-
duction programmes^ ...

. ; Growth and- expansion of
trade and economic relations
between the two countries is
highly promoted by the activi-.
ties of the Permanent Inter-
governmental Soviet - British
Commission for Co-operation
Jntlie Fields of Applied Science,
Technology, Trade and Econo-

by another 17%. : One reason for
this is that British firms bought
less Soviet goods, in particular,
machines and equipment. .

While analysing the current
situation, they sometimes point
out that reciprocal trade has.'
been unfavourably, affected first
of all by recession . .hr the

a special section

-V : ' '• ' •'!

... '-V. . *; ~ 7 •>*»* $ V I,"' • - t'.'*' '■v.'' -' ; v

E. F. MANAKHOV.

mic -Relations set up in 1971,
which has .already 'held 9
sessions. -

Speaking of the positive
trends and achievements in the
development of trade and other
forms of economic co-operation
between the two countries for
the past few years, we can’t
but point out that in 1980, for
the first time since 1972, the
total value of Soviet-British
trade fell back 5% as compared
with 1979 and in 1981 it dropped

UK and some other economic
factors- . ■

Not denying the Importance
of these circumstances, we
would like, however, to stress
that unfortunately in recent
years the development of trade-
economic ties him been made
dependent in the UK on
political considerations. It
is common - knowledge,
tor example, that the Bri tish
authorities . discontinued in
1980 the practice of . con-

M eluding longterm credit agree 1 ,
it ments with - the USSR on
mutually acceptable terms. But
giving credits is not charity, it
is a universally recognised con-
dition in international trade
practice for securing export It
seems evident that no large-
scale trade in machinery and
equipment can be developed
successfully if thin trade no
appropriate financial basis. At-
this point it is worth saying
that in the past intergovenmen-
tal arrangements on export
credits always rendered a great
help to British firms to secure
important orders for machinery
and equipment from the Soviet
Union.

As it is generally known, last
March new restrictions were im-
posed by Britain on the import
from, the Soviet Union of some
types of equipment, consumer
goods and certain industrial
products. These measures can-
not favour the development of
the reciprocal trade and
strengthen confidence between
the two countries. We proceed
from tbe fact that not - trade
limitations but a successful and
stable development of trade and
economic co-operation meets the
interests of both the USSR and
the UK and promotes the
solution of the ec onomic goals
facing the two countries. '

The USSR’s approach to the
development of trade l infat with
tiie UK is of a consistent and
principled nature and is based
on plans ’for the country’s
economic development which
provide for maintaining stable,
mutually advantageous trade
and economic relations with the
capitalist . countries, showing
interest in co-operation with the
USSR.

This fuDy refers to the UK
as well. At the end of last
March talks were held in Lon-
don to review the progress of

. /.r! :

0U|

V* r ’

ixassn ,

1332 ;

££50 '

1-3“* j

2.531 ; j

-»*£S

1S2S) j

2-491 ::

36? 4

;3 .632

3.^41

. Toc^secpncnyc^Fn^kx*^ .

show oom. But towi^cto they ^

erf everyday living? ’

\tx/Hftximastaftfiem have been designed to fit a price
ratterthan thefen^Mary of fteir^

CUC COSES.

Afccfc and Bade Longjoumeys can beapanintfie neck.
Lada give both driver and front passenger rec&nng sieatg with
adjustable headrestraSrits plus paddedswrveiringsunvfeorsto
k^usheadsnd5houldeisaboveouroQrnpetilX3i5. . .

Back seat driversarerft
neglected eitfierwrffi deep
comfortaWeseatHTg.

15.S‘ '[

! -

^6 A

v&L k

!i \

\X^iils!ttel600s3kx)noffefsatDdctioffuxiHywitf)vetour
upholstery arid a central fokfingar m resL

Knees and Efixjws. In the oDnfined space of smafferCTSr *
these parts of our body seem toconscantiy take the knocks
from dashboards, steeringwheekandthe Hce.

Every Lada^ however, offer s a m ple ieg ^ue t d - dn gspaoeto
ensurea comfortable ride. Pfusfour wide operangdoostD
mdee getting in and oik easy *

\Xfe krxwth^ even the hs yp iestra rn iB e s can gecabfttoo
de^fbrgamfi^Butthe a gpnrgnodagiglladavwthenot^i
seatii^roomfbrfweadufts;keq35thefar7SytDgeiher»--Ly
keeping them apart

Face. For yoursafety every tatfabtatedwMia l a maiatetf
wfirK fa oneeakieftia-neel seatbelts. DualcftqifcsefvoaBistBd
brakes wfth front cfiscs. Plus the extra tfnek metal in the bocf)?
roof and i n dac hasss fbr extra protection.

Best Friends. Lada haven't forgotten at least OTie mem b er
ofthefantiy may have fois-legs-

And unlessyouhappen to own a GreatDanethercbno
cfifffculty taking f»n along fbraridefGrestt: Dane owners
fihditworthwf^talarigafookattheLada1200andl5Q0DL \

‘ HoBdays.Ho6daysa^meanttobeer^oyedbL4th3fsnot
afvvayseasywhenyoi/retryingtocram^fthefarnSy's
ksg^gefrioasmailGarbOGC.

Theftxir laclasafoons; wfihthefir KX7oxJt boot
capaatyshefpyou getoff toa carefreestarL

. ; WaBet.>fetanother item we prorraseto Ipokafter.The
Lada range ctf four ckxjrs^consarKd five door estates starts
at £2499*.

drive a r^aMe,fagh specification, tow price Lada at
yoiffkx^LadaDe^ersocxi.'Vbullfrndfvnfirr^aavv Pages.

Liaiizj

economy

oesn'tcut

drivethot

Fbrftgthg-irtfor ma tkyi cuntaa:
Lada Cars f(B)tid*Ad\«rfeing^
INLHumberskte.YOl 5 ^.TefcQ 262780 IL

the implementation of the Long-
Term Programme for the
development of economic and
industrial co-operation between
the Soviet Union and the UK
and it was agreed and recom-
mended to supplement this pro- .
gramme with new projects. This
concerns the expansion of
Soviet-British business co-
operation first of all in such
fields as machine-tool malting
and the automotive, light,
chemical, oil, oil-refining' and
petrochemical industries of
both countries.

We are satisfied to point out
in this connection a growing in-
terest displayed by a majority
of British companies in develop-
ing mu tually beneficial, trade
with the USSR. A number of
Targe, medium and small firms
are making noticeable efforts
in this direction. As a result,
in 1981-82 British companies
were awarded Soviet orders tor
machinery and equipment worth
a total of almost £400m.
Soviet foreign trade organisa-
tions and British firms are
currently negotiating the pur-
chase in Britain of various
equipment tor the chemical, oil,
petrochemical, gas, automotive
and food industries as well as
ferrous metallurgy, engineering
and other economic sectors.

We are welcoming busi-
ness visits of groups of British
businessmen to the USSR that
have recently become more
frequent, with a view to discuss
concrete questions of trade and
economic co-operation with the
Soviet authorities, we also wel-
come the desire of British firms
to take an active part in the
trade exhibitions and fairs held
in the USSR, to actively parti-
cipate. in seminars and sym-
posia bn the problems of British-
Soviet trade, etc.

In tills connection I would like

to mention the trip to tbe USSR
last March of a representative
delegation of the London
Chamber of Commerce and In-
dustry headed by Mr MacWorth-
Young, Chairman of tbe Board
of Morgan Grenfell Ltd. The
delegation was received by
Leonid Kostandov, a Deputy
Prime-Minister of the USSR, by
Yuri Brezhnev, First Deputy
Minister of Foreign Trade as
well as by. leading officials of
other ministries and depart-
ments. The talks were of a busi-
nesslike and constructive
character, and all the members
of the delegation found them
useful and interesting.

We. the Trade Delegation of
the USSR in the United King-
dom, have always supported and
are ready to give in future all
the necessary support to trips
of British businessmen which
have a positive effect on the
reciprocal trade.

The Future

Speaking of the prospects of
Soviet-British trade, it is neces-
sary to point out that these
prospects win depend, from my
point of view, on a number erf
factors.-

Firstly, they will undoubtedly
depend on the general climate
in which business relations of
the two countries are develop-
ing. on the earliest removal of
those artificial and unjustified
obstacles and barriers that are
hindering the successful
development of trade.

Secondly these prospects win
depend on how active the
British firms will be in pro-
moting their goods to the Soviet
market, in providing for such
commercial and financial con-
ditions of deals that would
guarantee the competitiveness of
their offers and attractiveness

of these offers to potential
Soviet customers. There is no
denying the fact that companies
of other western countries are
more persistent and flexible in
competing for Soviet orders.

It is no mere chance that in
198681 when the volume of
Soviet-British trade reduced,
tiie USSR turnover with, a
majority of British rivals from
the industri alis ed capitalist
countries substantially in-
creased.

Thirdly, tbe prospects of
Soviet-British trade at large and
of British export to the USSR
in particular will depend on the
successful development of
Soviet exports to the British
market. Cuts in Soviet exports
caused either by recession in
the UK or by restrictions
of a trade-political nature im-
posed by tiie British side can
adversely affect the possibili-
ties of an increase in purchases
of British goods. It is common
knowledge that trade Is a two-
way movement, therefore the
growth of Soviet exports to
the UK meets not only
our interests but interests of
British importers and end users
of Soviet goods. In the long
run, it is in the interests of
those firms who are willing to
expand their share of export tn
our country.

To conclude, I would like to
say that Soviet-British business
relations have a longstanding
history and good traditions.
It's obvious that these
relations have bad ups and
downs. However, life con-
firms the indisputable fact
that it is an onward and stable
development of trade relations
and economic co-operation that
meets genuine interests of both
countries and makes a useful
contribution to the cause of
mutual understanding and
strengthening of mutual trust

AUTOMATIC CHUCK-AIM D-CEIMTRE

ENGINE LATHE

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for complete turning cycles of outer and Inner
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Based on the "Hektronlka NTs31" Compact
Microprocessors, the ON-UNE NC SYSTEM
offers adjusting and editing of the working-
sequence- programmes directly in the Lathe by
using the keyboard, with the programme
monitored on the digital display panel. The
programmes are stored in the direct-access
memory and are transferable from compact- •
cassette external storage.

Max. work see, mm:

diameter over bed 500

diameter over transverse carriage 220

Spuicfler.p.m. range 10.5 to 2000

Main drive motor, kW 10.0

OveraB dimensions, mm 2795x1190x1500

Weight, kg 3000

V/OSTANKOJMPORT. 34/63 OBRUTCHEVA VL 117839 MOSCOW V-342, USSR
Tet 333-51-01. Telex: 411991; 411 992; 411993

Agent:

MACHINE TOOL AGENCIES LTD.
Wwfenock Industrial Estate
Rotfiwall Road
Warwick, Wawicfcshfre
Til: 0928 496381 - Tolu: 31611

ch^±i>

SMALL STEAM TURBINES

^HVH^- D ’^^^OEW^BL^SY-TO-CO|vrrROL,

adjustable to fluctuations in steam and electric

ENERGY DEMAND, COMPACT AND SIMPLE IN DESIGN

“* condensing, of PT-typo, whh two controlled (process and heatftg)

steam bleed-offs, of 25 ahd 12 MW;
— condensing, of Ftype, with a angle (process) controlled steam

bleed-off, of 6 MW;

“■ coonterpressure, of PR-type^ with controlled process steam bleed-

off, of 12 and 6 MW;

— counterpressura, of Fkypo, without steam bleed-off, of 12, 6, 4

and2J5 MW;

— drive, of OR- and OKrfype, for driving feed pumps of 300, 500, 800

and 1200 MW power units.

All the parts and assemblies of PT, P, PR, R, OR and OK turbines
are manufactured under a flaw-detecting system which guarantees obligatory checking of
individual parts and assembed units after each operation, including hydraulic and rig trials

of the assembled turbine plant.
Assistance is offered in the mounting, adjustment and start-up of turbine plants, in
establishing and running the technical servicing, training of personnel.

© ENERGOMAGHEXPORT

Ul. Deguninskaya 1, korp.4 127486 Moscow USSR Hartfoptl,hIr *

Tel. 487-31-82 Telex 41 1965 EN EK SU

UCENSINTORG Is the Alt-Union
Foreign Trade Association
specialising in license trade and
related activities.

UCENSINTORG is the Associa-
tion of nine export-import Firms
representing the interests of
most industries of the Soviet
Union.

■MOSCOW USSR I

UCENSINTORG HELPS ITS
CUSTOMERS SAVE TIME AND
EFFORT by rendering expert
technical assistance, performing
engineering services, transfe r -
ring know-how, supplying mac-
hinery, plant materials and
specimens.

V/O UCENSINTORG,

11 Minskaya Ul, 121108
Moscow, USSR.

Telex: 411246; 411415
Tel: 1452700; 14 5294)0

B A! KAL” brand shotguns i . rift
“THE HUNTER’S SURE LUCK"

^ .^xc&ptionsl accuracy and
right grouping

* extra-dependable action and
construction

.tissV'-

Financial Times Friday

June U iy$ -

ADVERTISEMENT

rri • j the derofopmeot of fuel and

The Soviet economy

• ^ AA-d generated in tin coimti7, u 609

m s IIV I millio n tons or 122 million

■ I barrels a day of oil (Including

^ gas condensate) and 465 button.

cubic metres of gas (1000 ca m
of gas is approximately

The economic development of ward the needs of man and the will double and triple the rate equivalent to 1 ton of oft) were
Soviet society is a unique pheno- strengthening of its social in the previous five-year period, produced,
merton in the world practice, trend. This is seen, in a most Sociologists estimate that In the Branches that are instnnben-
For more than half a century general form, from the change next few years there will be a tad in the scientific and tech-

^ successfully promote

ttnue to succc-5* _
trade with the USS

Business!^ between

beneficial counCrt®

socialist for peace-

is the «c«2?®£ ofne^' > - bourty

a major factor or^ nr cscr-
relations amonS , bum 311

now, from the late 1920s, the in

distribution

pressing demand for furniture nological progress of economy

USSR national economy has national income. The share of because of improved dwelling as a whole were developing at

been progressively and steadily the consumption fund in the conditions,

as for the highest pace. The production

building up its potential with- national income is to account refrigerators, vacuum-cleaners, of instruments increased by 7%,

out crises. Except for the war for 78% by 1985 against 75.3% washing

dishwashing computers

years, there has not been a in 1980, Le. an increase of 2.7%. machines and air conditioners, resins and

10%. synthetic
tics — by 12%

single case of a cutback in the By comparison : previously, two According to experts, the high and NC machine tools — by 13%.
population's real income in the decades were required to bring mobility of demand due to the Full-scale manufacture of 3£00

it grows continually, about a 2% increase.

constant and steady growth of titles of new kinds . of Indus-

from year to year. In 1981, the The planning of economy for cash income and market satura- trial produce has been Intro-

first year of the 11th Five-Year the 11th five-year period en- tion requires that the manufao- duced.

Plan (1981-1985), the per capita visages a substantial shifting of ture of fundamentally new and
real income increased by 3.3%

The social and economic pro-

llp§f M

over 1980.

Here are some basic figures
characterising the economic and
social development of the USSR
In 1981. The national income
rose by 3.2% over 1980 amount-
ing to 474 biRion roubles.* The
industrial output increased by
3.4% totalling 648 billion
roubles.

The weather conditions were
most unfavourable In 1981
which affected the yield of farm
produce In the USSR; it was
2% less than in 1980. The
| three droughts of 1979-1981
were tangibly telling upon the
development of Soviet economy,
and first of all, upon its
agrarian sector. This Is whit
primarily ex p lain s the rather
modest gain In meat production
and approximately a 2% drop
In mUk production in 198L The
Statistics Service reports how-
ever, that the state grain re-

population^ needfor ?read rad A fountind told-rolling mill at the Magnitogorsk bon and Steel works

grain products. It is note-
worthy that the price of bread major proportions toward con- improved goods be to the tune granmfe

•H: V- :

;$* U.

current

remains invariable since 1955 in sumer industries. According of at least 5 billion roubles, five-year period (1961-1985) was
the USSR, and that of meat and to the Statistics Service, in 1981 Incidentally, the manufacture elaborated by the CPSU 26th

milk — since 1962.

group B, production of con- of colour TV sets is to Increase Congress. It envisages priority

* 1 rouble Is approximately sumer goods, was developing by 2.3 times by 198& and that of growth of the final economic
L5 $us. slightly faster than group A, cassette tape-recorders — by Z2 results over the rise in labour

The state purchases consider- production of means of pro- times over 1980. The pro- and material costs. Inciden-
ce amount s of grain on the duction. In 1981, the retail duction of micro-calculators, tally, over the five years the

world market to minimize the sales of clothing and fabrics in* electronic watches and reflex national income is to increase

effects of the droughts an the creased by B %, colour TV sets cameras is also to see a con- by 18%, with capital ixrrest-

consumer. —by 7%, furniture — by 8%, siderable rise. ments in the economy rising by

A high level in the consump- leather footweaiv— by 9%, tape- Under the 11th five-year plan 10.4%.

tion of many foodstuffs has been recorders — by 10% and" cars— plenty of scope Is allowed for In 1981, capital investments

ensuredin the USSR : on the by 15% as compared to 1980. strengthening the material and grew by 3%, while the national

average the dally consumption c*. technical basis oE trading. This income increased by 3.2%. This

amounts to 3,280 calories per Structure vital branch of people's economy characteristic feature is indica-

pereon, which is more than in The structure of capital in- still lags behind the present-day tive of the fact that the Soviet
many developed countries. How- vestments in the national requirements. It was noted in economy is being consistently
ever the food quality does not economy is also being improved, a government resolution that steered toward intensive
suit us because it is insufficient with priority being given -to trade organisations still exert development
in vitamins and proteins and consumer branches. Almost too little influence on the Of course, it would be

abounds in hydrocarbons. The one third of investments in the making-up of plans for the desirable for production

consumer. —by 7%, furniture — by 8%, siderable rise.

A high level in the consump- leather footweaiv— by 9%, tape- Under the 11th five-year plan
tion of many foodstuffs has been recorders— by 10% and" cars— plenty of scope Is allowed for
ensuredin the USSR : on the by 15% as compared to 1980. strengthening the material and
average, the daily consumption g|.„, technical basis oE trading. This
amounts to 3,280 calories per EHTUCture vital branch of people s economy

nerson. which is more than in The structure of capital in- still lags behind the present-day

suit US because it is insufficient with priority being given .to trade organisations still exert development
in vitamins and proteins and consumer branches. Almost too little influence on the Of course, it would be
abounds in hydrocarbons. The one third of investments in the making-up of plans for the desirable for production

improvement of food structure economy is ear-marked for the manufacture of consumer goods efficiency to grew fester, the

is therefore regarded in the development and perfection of and commit errors in assessing more so that there are quite a

USSR as an economic and social a unified agro-industrial com- the needs for individual groups lot of possfeilides to raise the

priority.

plex of the country. Under the of commodities. Sales workers standards of work in all the

“Orienting the government Uth five-year plan, as much have every opportunity for the sectors of people’s economy,
towards an all-round solution of means will be pooled into agri- development of socialist enter- Unfortunately, these reserves
the food problem, the CPSU culture, the leading branch of prises and an in-depth analysis are not made good use of every-
Central Committee as I have the agro-industrial complex as of the demand for consumer where. For instance. In 1981
already mentioned, has put over the whole period from 1918 goods. The elimination of short- the plan for the production of
forward the task of ensuring t0 197 °- This’ will allow the comings in the trade industry mineral fertilisers, timber and
Ktahi* cutmiies of all tvoes of growth rate of. farm produce will remarkably improve the ferrous metals was not fulfilled
food for the DODuIattonT appre- 10 speed up ahd increase the servicing of population and do Although the USSR leads the
Hablv increasing the consump- yearly grain harvest by away with the shortage of cer- world in the production of the

Son of hieh-mialitv food 33 “i^on tons, and meat pro- tain goods. above materials, it is certainly

non of hieh-mialitv food 33 million tons, and meat pro- tain goods. above materials, it is certainly

nroducts and substantially duction by more than 2 million An extensive sodal pro- no reason for complacence. In

dmptiirp^ tons. The per capita, meat pro- gramme has been carried out in brief, the e l i mina tion of the

T RreThnev at duction is to increase by 5 kg the USSR in 19SL Two million existing shortcomings in the

*£rrww.i and will be brought to 62 kg & new apartments were built national economy wiH demand

iur __ Jn .nm gjf rwtrol iula WU1 vluu&u I w w Ag « nan uyai uutuu toc ihwi iulwum cw/uuuy wia ae uutw

tfefijMn^ienum or me year by 1985, milk consumption enabling 10 million people to extensive and intensive work.

^ . „ will amount to 320 kg and eggs improve their dwelling con- The .

“It is planned to improve the ^ ^50 pieces per person. The ditions. Sodal . security .'turnover
^ram in raising of vegetable and fruit advanced to new heights : pen- billion, n

The . USSR foreign trade
mover amounted to about 130
hi on roubles In 198X, an in-

tite Kre-Year Plan period yields is also receiving serious sions were increased for about crease of nearly 20% over 1980.

to 250-255 million tonnes, meat attention.

14 million people, allowances The socialist countries, and first.

to 20-20.5 million tonnes, milk The shortage of some goods, were extended and cash aid of all the CMEA countries are
to 104-106 million tonnes, vege- and first of all those of high Increased to families with the Soviet tfodon’s major trade
tables to 37-3 9 m illion tonnes, quality and latest fashions, is children. The expenditure on partners. The 'trade with
frnlts and berries to 14-15 still experienced in the USSR public health service, education* developing countries is steadily
million tonnes. because of a number of objec- convalescence and other needs on the rise. In ^>tte of dramatic

The strategy of the national tive and subjective reasons. In increased by nearly 5% and deterioration of the . inter--,
development for the 1980s wiH the 11th five-year plan the amounted to 122 billion roubles. , national situation, many ad-
further orient the economy to- production rate of these goods Some figures characterising vanced capitalist countries con-"

aoi»S c j crane

srsySjS-i? aU ,ho

countries of the we.

Social advance,^ ^

And develop-

the country's sou** before.

Sent plans for 198 ?j A A ft s J« 0 ins
over 10 “^f^Pf^itipSTcon-
to W^ eir T S« ha*

ditions m 1S»2< i , l-oti-
long become f. lowing the
slant,

scope of boito» c. articular
in the country . *1“* .- he

attention is bei ?f r .P d 0 f the
children S An ioTnnus number

sjSs ^

STS

meats are being ^^Jf'kceDins

now 80% of the co=t of koep.n^

children at kiaucrsartvtu wu
nurseries is covered by the .taj
and only 20% by pa« aU - f ..{?
general, the du ^ ori n . icCi
tually all goods aad
for children are P^Iy suo-
sidised by the sfaic. Sgo^
secondary vocational
and higher education^
lishments are fufly .kept ay « u*
state since aU kinds of
tion are free of charge in the
USSR.

In 1982, the higher and secon-
dary institutions will turn out
2.1 million specialists. Expen-
diture on public health service
is rising. More than a million
doctors, or one third of the
world’s total number of tne.®;
are working in the UbSR. Prin-
cipal attention is presently
being paid to the improvement
of the standards erf medical
service, the development and
all-round introduction or
advanced diagnostic and treat-
ment apparatus. There is a fast
increase in the production of
hi g hl y effective medicines based
on the latest achievements of

the Soviet and world
pharmacology.

The progress of any country
dep ends ou the interaction of
many factors, ■ - Among them
there is a completely unique
and spe cial one, known as the
hitman factor. Its implication
is quite meaningful. Previously
it was mainly philosophers that
were interested in it, whereas
now it concerns everybody, and
economists first of all

In the past, the interrelations
between man and production
were suds that man had to
adapt himself to production.
Now rise opposite Is true; pro-
duction has to adapt Itself to
man it was this concern about
the human factor, the adaptation
of production to the needs of
man that enabled socialism to
rid people forever of unemploy-
ment, crises, depressions and
many other ailments of economy.

There has not b een a single
case in the USSR of curtailing
. social programmes.- In 19 82. for
frwfram’n* with the growth of the
national income being planned
at 3 per cent, tin expenditure
for health service, education,
social Insurance and other
needs wffl Increase by 4.1 per
cent Naturally, there are quite
A lew difficulties and . short-
comings to be faced in tbe de-
velopment of Soviet economy.
But the Soviet Union's economy
Is developing progressively and
according to a. plan, and is en-
tirely directed towards meeting
the needs of people and making
fhelr life better' witii every year.

Fifty years of the USSR C
of Commerce and Industry

B. V. P. PUTNEY, VICE-PRESIDENT OF THE U.55JL CHAMBER OF COMMERCE AND INDUSTRY

The USSR Chamber of
Commerce and Industry set up
half a century ago on May 28,
1932, as a public organization
called to promote trade,
economic, scientific and tech-
nological relations of the
Soviet Union with foreign
countries It wan formed when
two earlier existing institutions
— tiie USSR West Chamber of
Commerce and the USSR Bast
Chamber of Commerce and
decided to merge

In the 50 years tint have
since elapsed, the USSR
Chamber of Commerce and
Industry has covered a road
closely tied up with the
economic, industrial, scientific
and technological advance of
the cation, with expansion and
improvement of the Soviet
foreign trade.

In the early 30’s, the Soviet

economy. Under such circum-
stances it became imperative to
set up mi organisation, that
would deal systematicafty and
on a large scale with promotion
of Soviet foreign trade.

The USSR Chamber of Com-
merce (as it was named back
in 1932) became ah efficient
carrier of bueoness relations
with foreign, trade and.
economic establishments, pro-
vided assistance to representa-
tives of * foreign business
quarters in establishing con-
tacts with Soviet foreign trade
organisations, assisted and
actually conducted Soviet

foreign exhibitions and

arranged for Soviet displays at
international trade fairs.

The first time the Soviet 1
Union ever entered an inter-
national trade -falx was sixty
years ago (1922) in Leipzig.

ten years later it was fivefold
and reached by 3956 the level
of 6.5 bn roubles; by 1970 the
volume of the foreign trade
turnover had grown to 22bn
roubles and in 1980. it levelled
off at 94 bn roubles. Moreover,,
the Soviet foreign trade has
greatly expanded geographic-
ally; today, the Soviet . Iftahm
has .trade pnrtnem in 140 .
countries. The goods structure
became far more diverse. New
foams of economic -co-
operation have been conceived
and- are now widely applied to
practice.

The system of Soviet foreign
economic ties of today is a
complex dynamic anri integral
branch of the country's
national economy. As w as m uch
emphasised at the XXVTth
Congress of the CPSU, the pro-
motion. of economic., scientific

mmmm

members of the Chamber are the
largest SovSer industrial enter-
prises, research and develop-
ment establishments, . engineer-
ing institutions, foreign and
home trading organisations.

Representation
abroad .

Hi pursuance of its activities
an expl aining the principles
and the practice of the Soviet
foreign economic policy the
USSR Chamber of Co nmneroe
and Industry has established,
business ' . confects with
chambers of commerce and
equivalent organisations in 80
countries — most, of these on a
contract., basis. (Che USSR
C ha m ber . of. Commerce and
Industry has. representations in-
Bulgaria, .Hungary, the GBR,
Poland. YugosJa-'- ■

Amerce has developed wide-
ranging and diverse ties with
the Soviet foreigzMrade carries.
Group trips by representatives
of the British business com-
munity to Ihe Soviet Union
have become the most popular
and effective forms of the
establishment and promotion of
.good relations.

'■ last year the USSR Chamber
of Commerce and Industry
hoisted 30 delegations compris-
ing over 200 British business-
men.- They were given the
opportunity of visiting some
Ministries and foreign trade
organisations. Many firms estab-
hshed contacts which yielded
useful practical results.

108 contracts between British
firms and Soviet organisations
valued at over £130 million
* — such is the commercial out-
cons of the. trips made to tha
USSR by delegations of the
British-Soviet Chamber of Com-
merce in the past two years.

• In 1981. alone, the USSR
Chamber - of Commerce and
industry played host to more
than, two thousand representa-
tives of foreign firms and
companies On addition to
.*■ ■ foternar

tlcmal aim fnralun omI.i vju v

Chamber also received 72

Ei££M*Ki*KN7

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"- . : •••*.'«« ^

■i -s

Financial Times Friday June XI 1982

U .S.S.R.— BRITAIN :

Scientific and Technical co-operation

N.BORISOV

(Member or the Soviet ride of Cm P erman e nt htagw era-
mental Saviet-BrJtbto Commissi on for Co-operation in die
-~.V . Fields ml Applied! Science, Technology, Trade and E co n om ic
BdtBwiE, member of the USSR State Committee for Science
and Technology),

ADVERTISEMENT

-^1

V;

The 'USSR and Britain are

mai n taining I n^g w ftmHiwg . and

varied ties in the field of edeaee
and technology -winch play an
essential part in the general
scope of Sovlet-Brttish relations.
These lies are practised <m the
.basis of Intergovernmental
agreements , on promoting the
scientific and technical coopeut*
turn and the Programme .for
Scientific and Technological. Co-
operation between . the USSR
and Britain signed in Moscow
In 1975 for a ten-year period.

In 1971, the Permanent Inter-
governmental Soviet - British .

Commission for Cooperation in
the Fields of. Applied Science,
technology. Trade end Economic
Relations was set up to specify
the main directions, of co-
operation between the' two
countries, to improve the estab-
lished scientific, technical -and
trade Unto, and to* clarify the
most pressing projects for long-
term economic coopera tion. .

Joint efforts

The content of the scientific
god technical cooperation is
mainly aimed at the Implemen-
tation of the Long-Term Pro-
gramme which covers, among
other things, such industries as.
power engineering; chemistry
and petrochemistry, afi produo-,
tion, machine-tool building,
electronics, instrument-making
and others, as weO as agricut
tore and fundamental research. ’

Bflatezaa ties were also main-
tained through, eight Soviet-
British joint working groups

and under 24 agreements on
scientific and technical co-
operation between the USSR u
State Committee for Science and
Technology arid British com- :
parties and organisations.

. ‘Within the -framework of toe
working groups, representatives
of the involved ministries, enter-
prises, institutes, firms, nniva>
si ties and research centres dealt
with questions concerning the
forms and implementation. - of
cooperation on problems of
mutual interest Along , with
the tackling of problems of
an applied nature, as f or ex-
omple, designing of machines, ,
equipment and instruments, in-
formation *was being exchanged
on Ihe theoretical and practical
aspects of tribtfiogy and cono?
non protection xzf metals.

The working group for coaJL
industry represented by. the
Ministry of Coal Industry on
the Soviet side and toe National'
Coal Board arid '‘Anderson'
Strathclyde” on toe British,
ride has yielded .toe most tari-
sOrte results by today. Owing
to joint development work, a
pilot model of- an automated
entry-driving . msdrine viR be
engineered in 1982 to operate
in hard rode. This machine has
no .analogues hi toe world-prac-
tice, and its Joint quantity 1
manufactnrein the future can
be WgMyiprofltable. :

Other working groups also
bad their accomplishments, and
although fhdr jtentefforts not
al ways reriiMed.hr toe designing
of machines arid instruments or
theoretical developments, the *

exchange of- scientific and tech-
nical information, 4 fae testing- of
Instruments and equipment con-
ducted by them, aa well as joint
publications, conferences and
topics! . symposiums were un-
doubtedly to mutual advantage.

The agreements between the
USSR State Committee for
Science and Technology and
British companies embrace
such branches of industry as
production of synthetic
materials,- pesticides, dyes and
patois, automobile tyres and
robber-engineering articles (Id,
Shell, Dunlop, Revertex); oil
production, transportation «wH
refitting . (British Petroleum);
radio eleatroxrics, 'electrical en-
gineering. communications sys-
tems - and radio engineering
(FSessey, General Electric Solar-
troo, Marconi).

; ! In toe main, cooperation
.under ' agreements with the
comp antra was carried out to
toe-form at exchanges of infor-
mation and product specimens
to probe possibSaties for estab-
Ksbmg trade and economic ties.
As a. restrit of tori scientific and
technical cooperation, Soviet
organisations have sighed con-
tracts with these companies for
purchases of chemicals, instru-
ments and knowhow from

Cooperation between Soviet
a$d British institutions in toe
Arid of fundamental and applied
studies was further *wtn»na«fl.
Scientists from toe USSR Acad-
emy of Sciences, the Jodrell
Bank- Radio-astronomioal Obser-
vatory and toe Royal Astro-

nomical Observatory canted out
programmes fur josnt observa-
tions to the area of radio
astronomy and optical astron-
omy "*«ig both Soviet and
Bri tish instrumentation. They
have jointly designed an opto-
electronic camera winch opens
up great possibilities in study-
ing superfast processes to quan-
tum electronics. Exchanges of
scientists, equipment and
scientific information were prac-
tised to conduct experiments on
the development and application
of synchrotron radiation.

In toe opinion of the partici-
pating Soviet and British institu-
tions, the exchange has brought
pu s tiiw results. There cue also
, problems stflito be solved, such
as enhancing the. .effectiveness
of scientific' an ^ technical co-
operation, its closer link-up with
todustrial and economic co-
operation, i mp rovement to the
exchange of information, licens-
ing and patenting activity.

It is th erefore all toe more
a pity to observe that the
British government’s recently
announced sanctions aimed at
restricting -toe scientific and
twHmteafl Unity in a number of
areas inflict certain losses to toe
cooperation. The negative effect
of toes? sanctions is seen not
only in toe reduction of toe
scope and intensity of coopers
tion, but also in toe fact that it
Is deprived of -stability and
reHabitty.

The Soviet Union has always
stood firm for toe development
of mutually advantageous -scien-
tific and teefanioti. cooperation
and does so now, too. As before^
the USSR is prepared to deepen
and extend its links with
Britain. We are confident that
the above complications are of
a temporary character and after
they are overcome Soviet scien-
tists together with their British
counterparts wffl. be able to
continue making thdr joint
contribution to toe cause of
developing and speeding up the
world's scientific and te chni cal
progress.

50 years of the USSR Chamber of Commerce and Industry

Continued from Page 2, Col. 8

the Union of International
Fairs, toe Association of Inter-
national Trade. Centres, and
some others. Representatives
of the USSR Chamber, of Com-
merce and Industry participate .
In toe work of toe Conference
of Commerce Chambers of toe
Baltic Sea nations, the Soviet
Committee . for European :
Securitity and Co-operation,
toe movement for . “New ;
initiatives in East-West co-
operation

To promote and further per-
fect the diverse forms of foreign. '
economic relations and to com- :
ply more effectively with the <
requirements of_ the Soviet :
foreign trade organizations mid -t
their foreign partners the
Soviet Union has . built , In.' i
Moscow the Centra for inter- 1
national trade and scientific and
technological ; relations- with -
foreign countries , which has

been placed under toe aegis of
the USSR Chamber of Com-
merce and Industry andls run
commercially by the AH-Unfam
Association SOVINCENTR set
up within the -framework^ of the
Chamber.

Currently, toe USSR Cham-
ber of Commerce and Industry
: helps in arranging 20 . to 25
Soviet - displays abroad each
year, as compared to. the total
figure of 52 exhibitions during
the whole pre-war period. In
the course of the 10th Five-
Year Plan period alone (1976-
2980) the Chamber assisted in.
conducting 160 Soviet displays
in 53 countries, including 7
-'displays, at national exhibitions; -
107— at international trade
fairs and 25^-at Joint specialized'
exhibitions, visited by 107m
guests all- over the world,
displayed 500,000 specimens of
the Soviet: national product In

ATTENTION SHIPPERS!

'Regular sendee seivpjn January 19B1

BLASC0 ORIENTAL LDWE

Modem Ro^Ro ahfps fitted With TotttrsSers

• and haulage facilities

"KAPITAN SMIRNOV"
**KAPrrAN MEZENTSEV*
"1NZHENER YERMOSHK1N"

— cBipiaceriwnt laden/. 35900t_

—cargo space B^13m*

—2£T unit container wpadty 1300

— tgpspeed 25 kn

All lands of cargoes including veWdes and
caterpiUara* genera) cargoes stuffed into
containers.

DELIVERY

„ ...U 4
• ■ -

• , t

' 1981 the USSR' Chamber of

• Co m m e rce and Industry
l arranged for 23 exhibitions in
l 19 countries, in Ending
: National USSR Exhibitions in
i Mexico (Mexico) and Ulan-

Bator (Mongolia), international
trade fairs in Leipzig (the
r GDR), Plovdiv (Bulgaria), Bar-
» celona (Spain), Delhi (India).
\ In dose collaboration with
L the USSR Ministry of- Foreign
' Trade, toe USSR State Com-
1 mittee on Science and Tech-
nology and some other
organizations participating in
\ economic co-operation with
: foreign countries the USSR
-Chamber- of - C ommerce and
; * -Industry conceives and proposes
[. the subjects far international
1 and foreign exhibitions in the

• USSR and sends out invitations
; to foreign companies to .take
’ part in such displays.

Exhibitions and Fairs

The ' history of ' foreign
exhibitions in the Soviet
Union dates back to 1946 and
began with Fizzlands’s indus-
trial exhibition held in Moscow.
Since that time, toe scale of
participation of foreign firms
and companies in exhibitions
held in the USSR has incom-
parably Increased as weH as the
number of aH kinds of displays
held in our country. As com-
pared to the years 1946 to
1958, when only 42 foreign
exhibitions were held in the
Soviet Union, mostly In Mos-
cow, the years 1969 to 1963
witnessed 156 foreign exhibi-
tions, and In the recent years
as many as 200 exhibitions are
held annually in the USSR hi
more than 50-cities all over toe
country. AH these displays are
conducted thro ugh the offices
<a V/O EXPOCENTR under
the USSR Chamber of Com-
merce and Industry. .

In 2976-1980, maze than SO
cities in the Soviet Union held
altogether 1065 foreign displays
of all kinds, including 85. inter-
national exhibitions - where

22.000 firms and- companies
from 41 countries presented

800.000 exhibits. More than

20m people visited the ex-
hibitions. In 1962 alone, the
Chamber helped in conducting
about 200 displays ' of aH kinds
in the USSR, fadnding 25
international exhibitions such
as “ Stroldormash ”, “Bear-
ings ”, “ Communications ”,

“Welding”, ** Bytcfcftn and
the National Exhibition of the
Socialist Republic of Romania.

Last year British firms took
part in . 25 .international
and specialized - exhibitions
held in the . Soviet Union.
Besides, Moscow was the
venue of 14* -seminars
and symposia conducted by
British firms at which Soviet
specialists familiarized them-
selves with hew samples of
goods turned out by British
industry. ....

During toe currant Five-Year
Plan pezipd our cou n tr y plans
to conduct three to four large
international exhibitions each
year which are to cover the
most vital branches of the
national economy, though a
distinct trend is observed to
repeat regularly displays on toe
most essentiaT subjects. For
instance, a ' huge display

• Chemistry " w5R be set up in
toe USSR for -the fifth tone,

“ Inrybprom n — for the fourth
time. “Electro ” and “Public
Health”— for the- third time.

The activities of the USSR
Chamber, of Commerce and
Industry in other spheres are
equally wide and varying. In
the field at patenting the
I Chamber raiders services to
1 3,500 Soviet enterprises and -
; organizations winch patent
their inventions in 60 countries.
In the midfifties, patents for-
Soviet inventions were pro-
tected only in 12 countries.

Presently, as many as 3,500
patent and trade mark claim*;
are channelled through the
Chamber to foreign countries.
In the prewar years, toe total
number of Soviet, patent and
trade mark claims to be
registered abroad were a mere
120-150 a year. Today, more
than 2^00 foreign firms from
65 countries patent annually
their inventions in our country.

Further efforts

A significant increase in toe
trade in machines, industrial
equipment and consumer goods
brought about a sharp growth
of the volume of work exer-
cised by the USSR Chamber of
Commerce and Industry on
quality control and verification
of toe quantities of goods
supplied. The Chamber
arranges for about L5m
appraisals of various goods each
year with the help of 340 goods
appraisal bureaux and teams of
experts in 280 cities, ports and
border terminals in the Soviet 1
Union. For easier comparison
it will be relevant to mention
that back in 1928 — the very
first year the Bureau of Goods
Appraisal under the North-
Western Chamber of Commerce
started its operations— only 500
appraisal procedures were held
altogether; in 1951 the figure
increased to 10,000, in 1956 —
to 32,000 and in 1960 it reached
100900.

The volume of activities
carried out by the USSR
Chamber of Commerce and
Industry in the fields of infor-
mation and translations h as
greatly increased in the past
few years. Much of this work
is carried out by the Chamber-
affiliated commissions on
foreign trade and marine
arbitration, toe Bureau of dis-
patchers, toe legal section, the
merchant marine and marine
law section, toe section on pro-
tection of industrial property
and marketing.

In conclusion it could be said
that the USSR Chamber of
Commerce and Industry has
grown over its half-a-century
history into a large establish-
ment and accumulated vast
experience in the development
of trade and economic as well
as scientific and technological
relations between the Soviet
Union and foreign countries.
We are absolutely confident that
in toe future the USSR Cham-
ber of Commerce and Industry
wffi make a great contribution
to toe fulfilment of vital tasks
set forth by the Communist
Party and the Government of
the Soviet Union In the field
of foreign economic relations
with the view to further per-
fection at all-round co-operation
with foreign firms and organi-
zations in the cause of peace
and safety of al nations on our
planet

These days, when the most
aggressive forces, primarily in
the United States, are threaten-
ing the Soviet Union with
economic sanctions the USSR
■ Chamb er at Commerce and
Industry is applying stiH
greater efforts in order to
develop and strengthen
business relations with
countries of different social
systems, thereby pr omotin g in :
every possible way the cause
of practical implementation of
the statements set forth by toe
Pinal Act signed in Helsinki.
Comrade L X Brezhnev,
General Secretary of the CPSU
and Chairman of the Presidium .
of the Supreme Soviet of toe
USSR; declared: “We, in toe ;
Soviet Union, always see in
equal and free trade not only
a good means to satisfy toe
material interests of participat-
ing . sides, but, foremost, a
p owerfu l factor to strengthen
peace and good relations
among the nations.”

Commercial co-operation
strengthens market
positions of the partners

BY- 1, t KRETOV

SENIOR EXPERT V/O aetGOKttOBffORT

The - All-Union Foreign Trade
Association ENERGOMACHEX-
PORT has acted as an indepen-
dent body since . toe. spring of
1966. The main result is a
dramatic increase in. trade
which now exceeds .toe level of
2967 more than tenfold.

By following toe principles o£
Soviet foreign trade based on
mutual benefit, -equality of toe-
partners, non-interference in
internal affairs and strict adher-
ence to contractual commit-
ments, which- had proved their
worth in practice, V/O ENERG-
OMACHEXPORT -has consider-
ably diversified the geography
of its exports and imports and
established regular business
relations with over 600 com-
panies and organisations in 74
countries.

'£■**—* V- I-^v.

•?:^r^V^AV

Exports

Due to toe already established
international division of labour
within toe framework of
socialist economic integration,
V/O ENERGOMACHEXPORT
supplies large quantities of
machinery «tiH industrial equip-
ment to socialist countries on
the basis, of long-term contracts
and agreements on specialisa-
tion and co-operation in produc-
tion between industries of the
Soviet Union and socialist
countries. The supplies are
planned and tend to be con-
stantly increasing.

The non-socialist sector of toe
world market, too, accounts for
quite large transactions. In
severe competition, V/O ENER-
GOHACHEXPORT won orders
for and supplied large amounts
of power-generating plant for
thermal and hydraulic power
stations In Brazil, Greece, India,
Italy, Iceland, Canada, Morocco,
Norway, Finland, Japan and
other countries. The total power
of toe plants supplied to those
countries for 15 years by toe
Association exceeds 20m kW.
A part of this equipment has
been and is stiU being supplied
in consortium with a number of
major West German and French
companies, -such as Deutsche
Babcock, Brown Bovery (Mann-
heim) Energieverfahrnngs-
technic, KSB, MannaniwnTi,
Ais thorn Atlantique, Stein-
Induatrie and Bailey.

V/O ENERGOMACHEXPORT
had tried to place orders for
some equipment to complete
electric power stations also in
toe TJK, but toe bids of
British companies proved to be
less competitive, mostly com-
mercially, than those of their
counterparts in other countries.
But still, British experience and

“Russian Plasma” (UPS-301)
used for plasma welding of
stainless steel

Ugh expertise have played a
part in the Soviet power-
generating equipment entering
toe markets of third countries.

V/O ENERGOMACHEXPORT
has supplied individual units
and components of powergen-
erating and electric equipment
to toe UK. Thus, several
tens of electric generator forg-
ings were delivered on order of
General Electric Co in the 70s.
Birvelco bought from V/O
ENERGOMACHEXPORT in toe
same period several tens of
rotary converters for electro-
thermal equipment produced
by British factories for
domestic use as well as for ex-
port to third countries.

Ordered by Rank Xerox and
in accordance with toe com-
pany's specification, some Soviet
factories developed and pro-
duced five types of special-pur-
pose electric motors to be built
into the Xerox 3600 copier. The
company received a total of 50
thousand of such motors
through V/O ENERGOMACH-
EXPORT for toe purpose.
Other Soviet-made special-pur-
pose and standard electric
motors as well as electric in-
dustrial products, including arc-
welding equipment, are also in
demand among Bri tish - com-
panies.

The present stage of toe tech-
nological revolution and toe con-
cept of international marketing
put forward co-operation in
science and engineering, in in-
dustry and. in toe long run, in
commerce as a most important
aspect of international economic
relations at this stage of social

developmenL It is toe coopera-
tion beyond, tod limits of
paHnnai borders that makes- It
possible to use more fully the
•material and engineering re-
sources and industrial potential
of the partners, to improve the
competitiveness of their pro-
ducts and to complement one
ano ther both in 'supply o£
finished products to their
domestic markets and, more im-
portant, to enter the markets
of third countries with their
sophisticated-engineering equip-
ment.

The market for machinery
and equipment in toe UK,
as well as in some other indus-
trial countries, is quite specific
due to high requirements for
novelty and quality of the
equipment to be offered and
some differences in standards
for engineering and industrial
electric products. It is often un-
profitable for toe Soviet sup-
plier to offer complete
machinery apparatus or plants
to British companies. The devel-
opment of such products in full
compliance with toe specifica-
tions and standards existing in
that country involves consider-
able extra expenses which fre-
quently put the profitability of
such operations into doubt. This
is the reason why V/O ENER-
GOMACHEXPORT actively
seeks co-operation with British
companies in addition to sup-
plies of finished products.

Co-operation

A good example in this res-
pect is a joint production of
toe UPS-301 plasma welding
installation which is marketed
outside toe Soviet Union under
a trademark of “ Russian
Plasma.” This co-operative ven-
ture o rgan ised by V/O ENER-
GOMACHEXPORT involves toe
Electric Industrial Association
in Leningrad, toe major Soviet
producer of. electric welding
equipment, and toe Northern
Engineering Industries of Great
Britain. The basic model of toe
UPS-301 installation had been
developed by the All-Union
R and D Institute of Electric
Welding Equipment and is pro-
duced commercially by the
“Electrik" factory. Plasma
welding has some obvious
advantages. Id addition to
producing a high quality weld,
a jet of plasma used
there allows to localise toe
area of heating the welded sur-
faces to a m aximum. The instal-
lation welds sheets of copper
and its alloys 0.5 to 4 mm
thick, stainless steel between 03
and 5.0 mm think and al uminium
L0 to 8.0 mm thick. Three inter-
national diplomas and four gold
medals of international fairs
and exhibitions attest to toe
advantages of toe UPS-301 being
internationally recognised.

Engineers of NEI and the
“ Electrik ” factory reached
agreement on specifications,
documentation and parameters
for toe installation to be pro-
duced. V/O ENERGOMACH-
EXPORT negotiated mutual

supplies, prices and other oxm-
TOBTOial terms of the transaction.
The ' parties agreed that NEI
would produce control units for
the installations and the power
equipment and plasma torches
would be toe responsibility of
toe “Electrik." The results of
tocH n g the new installation had
been quite good and A* 3 *
consignment of toe Russia n
Plasma was delivered to toe
British market already in 1981.
We believe that such a co-op«a-
tion will expand considerably
the commercial scope of toe
partners.

V/O ENERGOMACHEXPORT
places some hopes on the Umo
Plant company, in which it is
a shareholder,- for development
of operations with machinery
and equipment in toe market of
the UK The idea is to
supply several types of baric
products to complete on the
spot so that toe British user
would receive toe equipme nt In
full compliance with toe coun-
try’s s tandar ds and individual
requests of toe purchasers.

As far as toe activities on the
British market are concerned,
close attention is given to adver-
tising and the use of various
med ia aimpH specifically at our
potential buyers in order to in-
form them about technical and
commercial capabilities of V/O
ENERGOMACHEXPORT in the
supply of machinery, equip-
ment, know-how and services.
The Association regularly
participates in international
exhibitions, arranges for demon-
stration of various machines
during specialised expositions
of its own and distributes its
Energoexport journal (of which
14 issues have been published
so far); All these measures help
to get in touch with potential
purchasers and to find partners
interested in co-operation.

It Is not always easy, of
course, to make up one's mind
to buy new equipment and
know-how. In addition to the
force of habit and certain con-
servatism, quite legitimate
doubts may arise in this case:
is toe new really better than
toe old? That is why the seller
has to exercise the utmost tact
and patience in promoting new
products based on new concepts
and toe latest achievements of
science and technology, especi-
ally so when toe promotion is
aimed at such a complex and
specific market as the British
one. V/O ENERGOMACH-
EXPORT has an experience of
technical talks lasting sometimes
for several years but If toe
seller and buyer take them
seriously, they are generally
crowned with interesting and
promising deals.

Negotiations are in progress
now with some British com-
panies on electroslag units, gas
utilisation and compressor] ess
turbine sets where toe surplus
pressure of blast furnace gas is
used to generate electric power,
on arc welders, turbogenerators
for gas turbines and electric
motors for various purposes.

Continued Page 4, CoL 8

ft J ■» J r - * I ' 6 :■

24

ADVERmEMENT

LICENSINTORG
for scientific and
technological progress

BY B. E. KURAKIN,

GENERAL DIRECTOR OF V/O UCENSINTORG

Our Foreign Trade Associa-
tion does steady business with,
more than 2,000 firms and
organisations in 34 countries.
To date we have signed more
than 1,000 export and import
agreements and contracts. But it
is not onffy a matter of statistics.
By exchanging licences, know-
how and other industrial
property rights with foreign
firms, LECENSINTORG contri-
butes to the solution of vital
global and local problems. This
is an important factor in the
economic progress of the Soviet
Union and of the countries the
Association has trade partners
In.

In its export and import trans-
actions LICENSINTORG has
been representing the interests
of Soviet inventors and organisa-
tions on the international mar-
ket for about 20 years now.

Many of the toughest modem
technological problems have
been solved in the USSR.
LICENSINTORG has signed
licence agreements ■ and con-
tracts with importing and indus-
trial firms granting them the
right to use Soviet inventions
such as the evaporative cooling
of blast furnaces; vertical,
curvilinear and horizontal con-
tinuous steel casting plants;
liquid setfhardening sands for
making foundry moulds; dia-
phragmless air-tight electro
lysers; the continuous casting of
aluminium and copper into con-
tactless electromagnetic moulds;
the cold rolling of extra-thin-
wall tidies of churlish alloys;
the electrodag refining which
ensures high physico-m edia meal
properties of metal; filter
presses for a tnghly-efficient
purification of liquids; high-
speed pneumatic sp inning-
machines; suturing surgical in-
struments and various highly
effective medicinal prepara-
tions; techniques of baking Rus-
sian rye bread and producing
champagne-type sparkling wines.
... It is hardly possible or
necessary, to enumerate them all.

I should only like to call the
readers' attention to the fact
that our association sells
licences for inventions in prac-
ticably all the key spheres of
modem science and technology.

We offer a selection of more
than 1,500 inventions, a rather
modest figure it would seem
compared with, the 80,000-85,000
new inventions entered in the
USSR State Register every year.
On doser examination the con-
trast is not so striking, after aU.

The point is, LICENSINTORG
does not offer on the foreign

market M Soviet inventions but
only those recommended for
sale by the Ministries and
Departments of the USSR
and of the Union Republics.
These organisations have
efficient patent and licence ser-
vices which analyse the current
trends in scientific and techno-
logical progress and the prob-
lems facing the industry at the
moment, and select the inven-
tions to be offered for sale on
the foreign market A foreign
buyer can always choose the
inventions best suited to solve
his problems at ■minimum cost
and with maximum profit In
conjunction with UGENSIN-
TORG. these services save the
prospective buyers’ time end
save them the trouble of study-
ing all tile patent literature pub-
lished in the USSR.

AR the inventions recom-
mended for export go through
production or reproduction
tests. This is one of tile major
demands LICENSINTORG
makes regarding the inventions
offered fur sale on the foreign
market Besides, this sav es our
clients’ time. LICENSINTORG
arranges for them, to visit the
factories where the inventions
of their choice are in use, and
to meet the inventors.

UCENSINTORG promotes
the development of aH kinds of
business links between Soviet
organisations and licence
importers.

Partnership

A good case in point is the
special agreement under which
Italy's Nuovo Pignone company
and the USSR’ s research insti-
tute TSNIKHBI are improving,
by joint effort, a Soviet-invented
multi-shed loom. We hear from
the company that tilings are
going well, and that a new-
more convenient and efficient —
modification of the loom has
been put into quantity produc-
tion.

At times, LICENSINTORG
acts as a sties representative of
industrial enterprises which,
though operating in different
countries, have developed a
joint product

In addition. UCENSINTORG
signs compensation agreements,
such as the contract for selling
to the USSR a licence to use the
sports footwear manufacturing
process developed by the Adidas
company (FRG). The FRG is to
supply to the USSR some of the
materials involved, whHe the
USSR is to deliver to the Adidas
company about 15 per cent of

the -footwear output as payment
for the licence and the
mat erials .

UCENSINTORG provides for
co-operation between holders of
Soviet licences operating in
different countries. By mutual
agreement UCENSINTORG and
these firms set tip “Licencees*
Clubs " to exchange information
about the latest achievement in
science and technology.

The holders of licences for tiie
blast furnace evaporative cool-
ing system set up their
u Licensees’ Club" which held
sessions in Donetsk, USSR, in
1973; in Tokyo in 1976 and in
Oberhansen. FRG, in 1979. Each
session left its p actwrip aBite
deeply satisfied by a frank and
professional discussion -which
would have been well-nigh
impossible under different cir-
cumstances.

Another dub was set up dur-
ing the 1978.Moscow conference
for the firms which had pur-
chased from. V/O UCENSIN-
TORG the licence to use the dry
coke quenching process. Dry
coke quenching installations
(USTK) have been ' built in
many countries by. such firms
as Nippon Kokan, Nippon Steel,
Ishi Kawajima-Harima Heavy
Industries Co. Ltd., tht
(J apan), ItaUmpianti (Italy),
Altos Horn os (Spain), Uztn-
export-import (Romania), Cen-
trozap (Poland). These installs- .
Hons recover a substantial pro-
portion on the' energy spent on
heating coal in the process of
coking and,' what is more,
discharge no phenol-contami-
nated sewage or dust and gases
into the dr. Soviet specialists
have made reports on new
developments in the field of
dry coke quenching, on new
USTK designs, on their effici-
ency and operation at Soviet
industrial enterprises. Spokes-
men of Japanese firms reported
on the installations’ work in
Japan. After that, the viators
inspected a dry coke quenching
installation functioning at the
Western Siberian Metallurgical
Works an Novosibirsk.

In its dealings with foreign
firms, UCENSINTORG uses an
effective form of cooperation —
setting up mixed firms carrying
out licence sale transactions
abroad.

The first of these companies,
Tecnicon, established in Genoa,
Italy, in 1978, is a typical
engineering setup which
designs various industrial instal-
lations and draws upon the
experience and potentialities of
its- founders — UCENSINTORG
and Italimpianta. The Tecnicon

depends for its operation on a
network .of UCENSINTORG’s
dealers in 25 countries, T tahm -
piantPs daughter companies and
branches. The designs created
by' the Tecnicon embody the
most advanced ideas put for-
ward by the founding com-
panies. Having access to an
enormous wealth of Informa-
tion, Tecnicon. can work out
optimum versions of designs,
equipment delivery and con-
struction schemes.

Another firm. Technounipn,
was set up in the FRG in 1979
along the same ' lines, its
founder are FerrastaM (FRG)

. and. UCENSINTORG. ' The
T ,T( iKNsriw tORG board feels
sure that this form of co-opera-
tion will develop in other
countries as veil, and last for
years. Its mutual benefits are
obvious to ail partners.

UCENSINTORG’s import is
dovetailed with Soviet economic
development plants which set
the policy of Soviet industrial
ministries and other organisa-
tions as regards the acquisition
of licences for foreign inven-
tions acd know-how.

For oar licence-exporting
partners* information, these
. muusteries and organisations
often don't like to wait for-
Soviet industrial enterprises to
bring a licence to a commercial,
level. In these cases, licensors'-
have a chance to deUrer the
appropriate products to the
USSR, and UCENSINTORG is
always prepared' to consider
export offers. The immense
capacity of the Soviet market is .
common knowledge. . ,

As for licences, proper'
UCENSINTORG maintains
active co-operation with such

films as Te rrti-n t rfmnwmgry

(GDR), Foseco (Britain), Bur-
in aister og Wain (Denmark),
FIAT (Italy), General Electric
(USA), Siemens and Deutsche
Babcock- (FRG), BBC (Switzer-
land), Alfa Laval AB (Sweden),
IwasaM Electric and Toshiba
Corp. (Japan) and many others
which, 'unfortunately, cannot be
listed here for lack of space but
with whom we are doing
mutoaHyprofitable business.

Success

We are satisfied with the
stability of contacts between
UCENSINTORG and ouf
foreign partners. Here is one- !
example. Bade in 1965, Japan's
Kobe Steel bought the first ]
licence offered by UCENSIN-
TORG for export — to produce J
vertical continuous steel cast-
ing plants (UNRS). Soviet
inventors kept improving this
equipment and years later, in
1972, the same firm purchased a
new licence— for a curvilinear
UNRS plant a more efficient
and profitable one. - •

• In 1968, Nippon Steel bought
a licence from UCENSINTORG
to use evaporative coding
systems (SIO) for blast furnaces
and other installations of this «
kind and, in 1974, ft licence to „
produce d ry coke quenching
plants (USTK). The firm has
built in Japan several UNRS,
SIO and USTK installations and
continues to design new ones of
ibis type on the basis of Soviet
licences and know-how.

Financial .Times.

' 11 IMditicMi ■

- r-y

FPAKM Filter press manufactured by “Larox,” Finland under c Soviet licence:

UCENSINTORG maintains. £ should like to add to what
the sam e dos e contacts with the I’ve -already said about our edr
FRG’s KHD company which operation with Itatimpiantx that.
purchased, in 1974, a licence for the setting-up of the Tecnicon
a new highly efficient method of joint company would; hardly
melting non-ferrous metal ores have been possible if UCEN-
— KIVGET-process . In 1978, the SINTORG had not sold its '
firm bought a new licence for Italian partner a licence for the '
an improved version of this pro- SIO in 1972 and a licence for
cess and for a modernised instal- the USTK in 1974. Whole trans-

lation to effect it

acting these deals we came to

know each other well, developed
mutual respect and personal
friendship; and now our rela-
tions are at their best.

" Cooperation /. rather .. than
competition,, mutual assistance
rather - than, rivalry", is. the
principle ... UCENSINTORG
follows in its business activities.
Our partners know .that -we
always, stick .to this motto.' " ' .

■Itowtidays^ ytftHCB * hanfly find a
piace'ia 'world where the
. ;^sd®ifiiand.|nhniiiaWe Russian
’Mahryndtitet dofis tare'-tat been
seen .and ( admired. •: SnfiBng .

. openfly and «a«y, they spread
the' jfcy^of :-Me 1*0 cen-

■ turie^M Rassaa,:,;.: .

The tnj^d, s^riy. Satriodiks
doH &“aftBa uaSed the- symbol

; of tins art-^and. the ^iacquer
' -pafintkj^j [created- -by .the artists
■* of OPaleSh* Fedes&inb, '.-.Mfera,
’Khoiod / are^deservfo^y . ,cim— .
sidered the- paamacte'nf -ftfe jut'
Capturedlna few square,

■ .-metres " you-' lean :-;seer . . mtaent- '•
herees ebeagedxn deoffly baffles

. -. troftfoas roaWng- : f : &fay« .
tale biDds in .fi^bt ; r i Wb&ts
snow gBstatiog In «» sun^4*
huge waves'breakhig' against
iw3c s -

pajntmgs; ^ -:r. . •

‘ Long of

- by ' the -true .-iart&asB } -wfe ftave
. haheritedtiiehc sKSl ftxjm'.tiieir

. grandfathers..- 1 R. fis : 'theyf-nhe -
tsinhout fiaahoius -Kfaottbmift-..'

. wooden .COps, dishes and. table-

ware* hi" fife?

rnttVoim stares and patntSiflni

- bright golden coilonis. '

Tt-fe they who : carve i&ora ^vwod
the imbeBlewrffiy 'lniot®e'. : beate,'
tares, f<®es cranes -hr-jtfce
o4d BogOTodsiroye vfifege. . . r
“ r lt Is ,th6y v*o mould d^'fato
nndticolimr- . Dymki>v«i:; ■ toys;

“paint . TnagnS Sce».t ; flowers :* On -
. Zhostbvo ( 'on traysT c^st itople -
: irem. ' Snto':;"wonderfhl'l KaSff -
: figtrrin^ . .. . Every item is ‘ the
* emb odiipent of the ■ ’ ar^ of

the lnstoiy of -thej pebpi^. -

: ' The .ceafftorfesMokJ-' ;;It' VriR
. hve forever:; . •'• - * .. r- ; • ‘

, ^ ’v ■

- . Con&m^ ^fnwh P^e iS r^v " i 1

We -have been tryingito find,
fin: same years now a reliable
and- mutually beneficial basis
. fdr^coojferation in exchange fiw^
equipment and- knowhow, with
, British - Bteel Corp,/- ■*- major
: British producer. We fed ihat
: this field of possible , co-opern-
: tion holds good promise In Spite
of a iharicedv a»cestion^-i&;.
Westem Eur ope: lately, :

As has-beertmentioned shove,.

' V/O ENERGOMACEEXPOST;
has a lot Of experience in co-
bperatipn-'witii some Westsin
companies - ^aS "'a ^member;, of
consortiums supplying cobqjlete
equipment to' third countries.,
Wearewliling tp'seek patiently
and carefully . ways;af co-opera- .
tion witii Britiat -producers of
. pqyfer-generating machinery . in .
\ sudd . joint' ventures * became
these ways ,df effective cuopexa-
tkm promote mutualintereSts of
'the .parties^'.'.; ' .

25

56 11 u*

fs

;j n - . 5 **

*r?j-.«-f . -.3

* ' r - a-- l > , i»

7t ^ --Kit.
?-- — r-a a

'•VVr'.-n^

;.:;',^;'.'5

L. . '

* “ •••r- . •

• *. - V -

, ' -■ 1

■'■ -..’*? {.«
-r i -

i'r&i
• :- -^-l

'^.y^. 1

- .^i
• - •■'%- --^ .
• ;: '( ' i

Financial Times Friday June 11 1982
Canpanin and Markets

put B. Elliott In the red

UK COMPANY NEWS

Sonic Sound in
loss at £0.6m

HEAVY - sectnjd Saif losses '" ‘ ■■■ " ■■■■

pushed. S, Elliott and Company, BOARD MEETINGS
.manufacturer of . marirme tools . nnwiinw

-SOd- «n g <TiP«w4n g . prt>i^i h * t c ’fntn Tha foKowfno . compCMM have -nod-

* ***** ^*zj^rtstsLS 2

31 1382. THe second half losses - uau^r h«ta tor the pyrpoM of eon-
amounted to £2.82m scalnst .aiderma Sivfdwids. OfBclel IndtoeVora.
profits ‘of £3, 4m, and' the deficit' ' J »™' ra* avaiieWe n to wtirtwj atm

£S T£

P“W*:.®*;'*baead JnMy on toot yew's tfrnoaW*-

.’*' Mr Mark BnsseD; fee diai m a n ^ interim s — Burea Dm, GrooNtel Pro-
• says, toe year, turned 'oat to -he ■'■primary - Mkrai, Johnson and - 'RtMi.
‘“worse than- we 'expected when Brown. MMfovate Cbnsofidftuct Mime.

■"■ySS f* * fateri mrau lU “fSS^bSS
-last 'November. The- company mco ineuiMfMiMi, Hemy wigtsu.
.■was -then experiencing a alight • future dates .

■= onproveaneut In -order levels in - interim — -.

.-the United Kingdom, “ but this Hardy* and Hansom ...... Juris so.

-.•• *ee6vexy fizzled out in the last ‘ «

fmarthF- 1 * AlUilHO. {£■) Jllflfl »

■ ’ Ii_l ! .4_ ’• • Country and Nsw Town Props. Juns 18

At the same time, the company pawtefc (J. t.j Jura is

Lcduntered - a worsening of Saooera Juns 3*

;■ encountered

worsening

the already depressed North: indumriss Juno 17.

American njarkfste and saw South WG * Jura »-

Africa and Australia j oinin g the . ■ . ■ ■ — ■ ■— ■ ■

rwt of the world in recession, 1 ^

• In ' the ■ cixcumstances, the to servfi tbe ®^

?eaS ' ?i f or ^ ra ^ afi r «trao*diDtty itedt

years final was ; 3p for a total of Desprite fids .setback* the groq-P

j a Is conftmuing^ to rarest to the

' dewSopme^ to otter fDoixfay
. says -the outlook for .the imme- enerdt&mH. "* ■■
i ..dJate future is .not bright ami he u r ■ '.cam TiMrifWria

been Installed to serve these

opeitftims.

expect? .the grojip. to contuuw to- in^trSi
.Incur r trading. Jmsm j n the SS2£ tr Si

Mr zRtapeU -says GoMflelds
idustrial '. Ccrno^tioc, '.- ln-
>nth Africa, efthough not re-

? I - >roj^S el0P '• ■* >rom | sin « ^sales' ^S&nt- .> . •'

•*--?; ; “ ' In.tfie longer term, however, wr

•:: -a.;;.' ■ he say? the prospects for. the W'SSL ?£dlv

'. — ■•— i ’- erauh mne hr> emVi tSODU, mehtrooed by u^e chair-

- - ■ ■ Br 2J? p musc De 5 0WL mar. loxt bvWjrv, "wsnmrfc vms

?fi fros p^, ,

£349,000 fa 38m )'. the retained
.loss emerged at £5.97m against
a retained profit of £984,000.

;- • On a CCA basis, there was .a
pre-tax toss of £3.62m (£3.55m
profit). •

.•comment

The misfortunes of the machSbne
toof . industry are graphically
- repre sented by B. Eufotrs share
: price since profits peaked two
years ago at £11. 4m. At 260p the
shares weer then disaiuntdiig 'a.
reasonably smooth rWe through
-the recession. Yesterday's 53P- 4 —
down a further 13p— shows how
hbHow &ose expectations were*
Probably the most depressing;,
aspect of the • results— -even
though the figures are worse
than expected — is the evidence
that ‘conditions in ElUbtt's
markets are - still thoroughly
gloomy. Even South Africa;
where it was still possible to
'make £3. 3m * before tax; fell
atari of 1981 by shnvst 30 per
cent and has gone considerably
quie ter. North America, wMcb
turned down . by more thm £3tn
into the red, win at least .re-
quire no further injections of
cash; having taken a bath, Elliott
has turned off the tan, ctoalng
• manufacturing operation? " and
halving the sales .force. As for
-.the UK which flattered with ,a
temporary ’ 15 per cent improve-
ment in order levels during the
last few moarths of 1981, volume
recovery is not envisaged. In
the end, it was a look, at the :
order book ; which removed
Elliott's iocli nation to pay- a
dividend.

A DECUNB' into pre-tax losses
of £668,491- has been shown :by
Sonic. Sound Audio' Upldings,
electronic equipment retailer, for
the six months to May 1, 1982,
despite turnover ahead by £230m
to £4.49m. In the corresponding
period of 1980-81 there was a
.profit of £353,610,

“ The -company has ^sperienced
an Increase, ia trading volume in.
the first' sixrweeks of the second
half," says ..Mr„ Lionel Astor,
cisdman, arid predicts that’ there
will he a marked improvement
’in tb? results of the last six
months. ^ . V.

An intbrlrii -dividend of 0-5p
has been declared. Last -year a
total of 4.48p was paid from pre-
tax profits of £S04£57 on- turn-
over of £4.73m. " * ‘ *

A major expansion programme
was started last year involving
expenditure .of about- £0.5m.
Results in the first two /months
were encouraging, says Mr Astor,
confirming the* anticipated up-
ward trend to trading, .'

Hie factors which disrupted
this trading pattern, according to
Mr Astor, Included the prolonged
recession, “ one' ofi the; most
severe winters seen; for tiver 10
years, six week? of chaos- on the
railways, as well as disruptions'
on London Transport, including
-resistance to, fare increases"

Interest costs for the i period
trebled from £50,000 to £150,000.
There was an exceptional debit
.this time of £30,000. / And a

charge for tax last , time - Of
£60900.

Since the end of the first half,
the financial director, Mr Henry
Shaw, has resigned because of
-ill health.

• f-

• comment .

Sonic’s figures are appalling.
Last year’s dramatic dash for
physical growth' was ill-timed to
say the very least. Before it went
public in January 1981 a large
concentration of concessionaires
in the shops paying rent and
commission meant that Sonic’s
overheads were virtually covered
no matter what. The new open:
tags removed that safety net.
Sonic tried to do too much too
qiucUy. Overheads and stocks
shot up and borrowings soared
reaching a peak of £L.4m. That
might just have been -manage-
. able if sales had held hut a
collapse m demand and subse-
quent price war left Sonic awash
with red figures. This half-time
loss is after a profit of £150,000
In the first twti months. Stocks
haye been chopped and though
there is ' room to squeeze out
another £)m that would still
leave borrowings of- £lm against
shareholders’ funds of under
£0.9m. Now Sonic -Is talking of
. closing two or three of the shops
it opened just last -year. The
second Half may be better but
there is no ' hope of a profit.
Promoted by a share' price,
already on the skids— doifrn from
128p to 72 p — the company made
an official statement last week
warning of a poor set of figures.

Biirrough
improves
to £ 3 . 53 m

AN BASING of - the destocking
that occurred In the first six
months and dose cost control
were reflected In the Improved
pre-tax profits at James Bur-
rough for the year to February
28 1982. The surplus of this
distiHer of gin rose by 12 per
cent to £3 .53m on sales of
£362im against £34.46m>

. “This was a better result than
anticipated at the half-year
stage," says Mr Norman Bur-
rough, chairman. Commenting
on future prospects he says that
m spite of continuing recession
in many markets, the company’s
brands remain ' strong. “I am
hopeful that the coming year
will see a further improvement
in profits,” he says.

Beefeater Gin continued to
dantinate the imported gin
market in the U.S. and Canada.
In the UK Mr Burrough says
that Beefeater Gin increased its
market share despite a decline
in total gin sales, and in the
rest of the world results were
satisfactory . m, difficult trading
conditions. i

A second net interim of 4.9p
(4-3p) raises the total from 6.1p
to 6.7p:

TOUCHE REMNANT

Following the acquisition by
Touche, Remnant & Co of
Ansbacher Investment Manage-
ment, the latter’s name Is
being changed to Touche Rem-
nant Financial Management
and the business has been
transferred to Mermaid House,
2 Puddle Dock, London, E.C.

Rolfe and Nolan
jumps to £ 300,000

TAXABLE PROFITS of Rolfe &
Nolan Computer Services
advanced from £155,000 to
£300,000 for ’ The year ended
February 28 1982 on to crease of
94 per cent on higher turnover
of £1^6m, compared with
£770,000. Midyear profits rase by
£89,000 to £110.000 and unproved
figures were anticipated for the
12 months. -

Foil year earnings per lOp
share moved up to 9.1p (4.8p)
and the net dividend is being
increased by lp to 2J5p — the com-
pany's shares are traded on the
TJSM-

The pre-tax surplus Included
net investment Income of £25,000
(£11,000) but depreciation took
more at '£138,000 ( £92.000 T

reflecting a full year’s charge on
the company’s existing equip-
ment and part charges on new
equipment acquired during the
year to increase operating
capacity. Tax paid totalled
£73,000 (£41.000).

Growth during the year came
from new client business for
commodity brokers accounting
service, which exceeds £lm in
revenue, combined with a first
full year’s contribution from the
commercial esrvice business. The
company’s balance sheet
remained strong during the year.

At year end the company had
five digital equipment computers
In operation and one further on
order. CCA pre-tax profits were
£290,000 (£143,000).

• comment

After an unpromising debut-
year, when Rolfe & Nolan missed

both its forecasts, things seem
to be going rather better. Price
increases for the commodity
broking service have not stopped
R'&N from picking, up new
clients; about half the growth
here was the volume due to a
spreading client - base. RAN
now reckons to serve the com-
puting needs of about a quarter
of the London brokers. It is
likely that some additional busi-
ness will now accrue from the
participants In Liffe. . A foil
year’s contribution from' the less
specialised bureau- — wh i ch came
from Btmzl at the end of 1980 —
accounted for roughly half the
Increase at the operating level,
helped by a venture into writing
special software packages on a
one-off contract basis. There
could be more expansion if
R & N can make some more small
acquisitions, adding useful staff
or saleable programmes to the
armoury. At 72p,' up 14p, the
shares yield 5 per cent and the
tally-taxed historic p/e of 12
seems more in touch with reality
than the lofty rating of a year
ago.

WIDNEY

The majority of the shares In
the recent rights issue by
Widney, formerly Hal lam,
Sleigh and Cheston, has fallen
to the underwriters.

The underwriters, which
include Sheerwood Corporate
Services, a subsidiary of Central
and Sheerwood. and three City
institutional investment funds,
have taken up 3,025,864 shares,
or 57.5 per cent

"working, -ho ^ys a U the ^

manufacturing nuT mernhanting rgmen^^iS.

tooted to a. very, low -level and
- the. drop in orders for imported '
SS°L^ £® ^ toachmery ‘was particularly
Home sales fell- from £51m to -Revere. ■:

gffi n. but .exports remataed^ .. turnover

fu 8 * 1 ® at (£16m). • for the year . was. (.down . from
. . WMle there Were no plant ml97m to flOS^lm." Trading
el osuresr -he- says- the group was profits Wit from £9.9m to £?.74m.
forced to make a number ot Depreciation rose from £2.G8m
redundancies, and- by. the yeaxv . to {2J£Lm -and -interest charges
end t h e number of employees in wore- higher at £2. 02m against

the UR- was down to 1^00 com- ' £T 27m: — : . . .

pared with '3,200 at tiie start a£ •' -There .:/iW tor -ctege of
the recession. - - £780,000 against £339,000.

He says the Leicester foundry Minorities 1* *: took £350,000
was particularly badly hit by ‘(Xl.llih) and there was an extra-
the decline in demand for cast- .ordinary - debit of ." £2.49m
ings from the commercial (£2.75m). The extraordinary
vehicle, - mechanical hanging items comprise Costs associated
and off-highway vehicle sectprs. with factory closures and other
Production was ended on the .significant reductions in plant
MOWmaster phut, winch had -capacity- After dividends of

reorganising

Shuck, chairman and 1 chief
• executive, Mr Peter Gilman, the
deputy-chief executive, Mr Paul
; Cooper, and Mr Fergus Cleave.

— Espley-Tyas acquired 47; per ■
cent pf .the Mansion Develtw-
^mept Group in April for an
-initial sum - of £803,419,- and - a
•defcared payment related to 99
per . cent of. Manston's NAV at
^SeptepTber SO 1983.' It. was
impressed with the management
potential of the company and
. .says- it' intends' to use these skills
in its new divisions.

EspLey-Tyas, a property - and
. construction'' group, Is- to re-
. organise r its subsjdimies .- into
four divisions to makeherter use
-=of^tho-^roupls ^managesKOt- and
. to intt^rai^tirir retettf Manfttor
Development ^.Group ..acquisition
more fuHy into tire; oompipy. •

An extraoi^wu^.^ general
meeting Yesterday, awnrivied the
changes which vesilt in the creai
tion itf : rotir-, dfviei ops— ^Espley--
Tyas ’ )evelbcttneiiis, Dspley-Tyas
Cons! Qctipn. Rspley-Tyas Over:
seas tndt the ; Mahston group.;
Overall ^management for . the
group as; a whole will be in the.
hands : eft - a four-mao' - group;
executive,.’ all - at main board
level, consisting . of Mr Ronald

^PAIN : j

jiMvalv'.-': ’• -
Banco' Bttbio —

Banctf parknri ' .....
Banco Eabwlor ..
Bano^ Nlwano -
_Bencb' Jnd. Cal.
Banco' Samandar
Banco toqoijo .
Banco. VJzpbya ..
Banco Zaragoza
proqadoS'
Eaiponolar.Zinp';..-.
F*caa

Oat. Pitehadba

44tdrcda -

Ittarduato

PlftfalBOs

Pettolrbar — .^.1.

Sogefisa

Toialorwca'

Unjpn* Bact.

27/28 LovxtLane Cpndolr £C3 H- ^E 6

TTTfj

JFjTrj

ymiaiia

till

TOEtJMCSfARY ANNOUNCEMENT

Turnover ’ - - ^#15^89 1,713^69

Group Trddtag Profit 245,233 173,819

Taxation “ ‘ -V JMWfi' 86.900

profit attributable to sharehoWears 122,653 88,919

Interim dSvktond per. share <1) - «J2«8ffp 0A26S5p

Earnings pep share .. : . ; • ■1227p S.69p

(Z) Interim dividend of OB268S pence per ttare is payable
on 23rd July 1982 to members on register at dose of
btnliMMl on 2ftJd June 1882.

THE TRING HALL
USM INDEX
• 12W(rW)l. ;

due of business 10/6/82
base DAra-ie/n/so ibo ;
TeL: 91-638 1591

T ADBKOKE INDEX

OotSfr 575-580 f-U)l

I

At the Annual General lVIeetingof BAT Industries p.Lc. on 9 June
1982 the Chairma^Sir Peter Macadam, after reviewing what he described
as 'oirtstandinglygood^fesuttsforl 981 , offered shareholders thefoKowing
assessment of Group trading prospects for the current year

J4 i wouldsay, attheoutset, that whilst I see progress in all our
businesses, I do not expect the overaH picture to show quite the same
excellent rate of improvement as was achieved in 1 981 . Inflation-rates are -
slowly trending downwardsan d interest rates also, although to a lesser -
degree. However, thesigns of genuine recoveiy inthe economies of the
world are still but few. .

The pattern of changes in tobacco ...
volume coittinuesto reflectthat of 1 981 - ' — . .

with an underlying growth in most I

markets, offset by a decline intotal
volume in Brazil following a price

volume in Brazil following a price
increase in January,some three months
earlierthah budgeted. Afurther exception
is Germany where selling pricesincreased _

atthebeginningofthis month by Turnover

approximately 30%, reflecting increased Trading profit

. excise tax. Thiswilt bring pressureon - Profit before taxation

yolumedunngthe remainder of theyear. Net profit before

However,! expect a further increase in cvh-unHincnf

overall Group turnover and trading profit
fromtobacco. • -

I alspexpect better resultsfrom our . ordinary snaB

UfCretalllngoperatlons. f n the United Diviaenos per sham ■■■

States, there has been some softening In ■

, retailing generally since the turn of the
year.Seiuhgprices are not expected to
keep pace with cost inflation so, whilst turnover is expected to
. rise, there will be some pressure on profit margins. There will,
of course, be a considerable increase in Group retailing
results through the inclusion of Marshall Field for more
than half the year.

. Althoug h intern ationallythe pulp and paper
industry asa whole is experiencing a further delay
in recovery, Wiggins Teape has achieved
improved resu Its in the first quarter of^ 1 982

*

/

RESULTS SUMMARY - Year to 31st December

further progress durmgtheyear. Appleton Papers, Inthe USA, also expects
increased turnover and trading profit

Mardon Packaging foresees only a small improvement in trading
profit Its fortunes continue to be tied to a great extent to those of its UK
customers and whilst it has considerable international potential in die
longer term, it is bound to be constrained inthe shortterm by the low level
of demand in its home market.

Brrtish-American Cosmetics continues to build on the achievements of
the pastfewyears-and expects further improvement in results, as also does
our German Homefmpravements business.

Furthermore, the strong

- - - ■ . — ' - ■ ■ perf ormance of the majority of our

Associated Companies continues and
Year to 31st December these companies now make a substantial

* i contribution to Group results.

Ickm toon °L ; Additional bank loans were arranged

^ - hi-- - • to financethe purchase of Marshall Field

£ millions change Which afsdhas debt of its own. There
,265 7,645 +21..-: will, therefore, be an increase in Group

634 467. ; : ;:+36 ; interest paid,

684 479 +43. Exchange rates have generally

moved in our favour in recent months.
363 234 +-55 1 Should this continue to the end of 1 982

then the improvement l foresee in Group
Mfln >' ' ' .cj- * * ' trading profit^, in profit before tax and to

^ IS? ' ‘ ® . lesser extentin profit attributable to

23.0p t&0p. +21 B AT Industries will beforther

• enhanced."

^Windsor House, 50 Victoria St* London SW1H0NL
i copy of the Company's 1381 Report

1980

£ millions

change

&265

7^45

+21 :

634

467

:+36 : •

684

479 '

+43. -

363

234

/■'455-

S9.9p

64.4p

• ' +55 *

23.0p

taop:

+21 i

I

.BLOCK LETTERS PLEASE

!*y

ra'rli’

: axr-

y

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i

Hi*

1

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ifc.

Si

"» i.

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i/ZS'Tjr^ j

v, ~-*

I

'Wiy, f;

’.i

Chi'

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Sk

B’A’T Industries p.I.c. • Windsor Home ♦ 50 Victoria Street • London SWIH ONL

26

CoBpames and Markets

UK COMPANY NEWS

Financial Times Friday 1582-

MINING NEWS

Further curbs
on metal output

BY KENNETH MARSTON. MIMING HHTOR.

FOLLOWING the news that
America's Amax is cutting copper
production by 40 per cent at its
Carteret refinery in New Jersey,
there come further reports of
other cutbacks and closures as
the world mining and metal

lost $3 -9m (£2-2m)' last year as
a result of falling metal prices.
It has lost a further S2.3m in
the first five months' of this year.
The closure of Star is expected
to be pexmanent.

Hecla has a 60 per cent stafee

industry struggles to cope with in profits of the Sherman lead
the economic recession. and silver mine which is owned

In Ghana, one of the five by Leadvflle Corporation, Produc-
p rimary al umi nium-producing tion at Sherman was suspended
potlines at the Yoita Aluminium in January but it is hoped to
(Valeo) smelter is to be taken reopen tbe mine when metal
out of operation by the end of prices strength eO-
thi s month. Valeo is Africa's Canada's Sberritt Gordon
largest producer of primary Mines, reacting to a further de-
aluminium with an annual terioration in copper and by-

capacity of 220,000 short tons. It
is 90 per cent- owned by America's
Kaiser Aluminum and 10 per
cent by Reynolds Metals.

Kaiser says that with this cut-
back the group will be operating
at about 58 per cent of its world-
yvide primary aluminium capacity.

Becla Mining is to dose its
lead-zinc-silver producing Star
mine at Burke, Idaho and to stop
the expensive exploration pro-
gramme at the Sherman property
in Colorado.

Hecla and Bunker Hill
jointly own the Star mine which

product metal prices and the
closure of outside facilities for
the treatment of its concentrates,
has now advanced and
lengthened the summer close-
down of its copper-zinc mining
division in northern Manitoba,
The closure will begin on
June 19 and run for seven
weeks. Previously the planned
vacation shutdowns had been
for six weeks ait the Fox mine
and four weeks at the Rattan
mine. The shutdowns wffl result
in an estimated reduction in
output of 10m lb copper and
2.5m ib zinc.

Kimberlite in Michigan

KIMBERLITE, the “ blue
ground ’’ which is a host rock for
diamonds, has been found in
Michig an by the U.S. Geological
Survey and at least one company
has begun to prospect for
diamonds there.

The outcrop of kimberlite
occurs on the Keweenam penin-
sula which pokes into Lake
Superior in an area which was
mined in the past for copper.

It is acknowledged that the
chances of finding a viable
deposit of diamonds are no

better than one in a hundred.
However, quite a few diamonds
have been found in the U.S.
over the years, mostly ru Arkan-
sas and California.

According to Mr Jade van
AlEtine, a regional geologist for
tbe State Deportment of Natural
Resources, one company has
already said that it has spent a
considerable sum on surface
exploration. " I have no way of
vouching whether they had or
not but I do know they had
crews up here,” he added.

Chapman Inds. down £lm

ALTHOUGH pre-tax profits of
envelope maker Chapman Indus-
tries fell from £123m to £259.000
for the 53 weeks ending April 3
1982 the directors point out that
the second half showed a steady
improvement which should con-
tinue in the current year. First
half profits dived from £567,000
to £85,000.

Stated earnings per 50p share
were 2L54p (29.83p) actual and
5.18p (24-5P) notionally fully
taxed and a same-again final divi-

dend of 4.5p maintains the net
total at 65p.

Turnover fel from £12 59m to
fllJSm and trading profits
dropped by some £lm to £316,000
the effects of the recession,
greatly exacerbated by destock-
ing. are blamed.

The pre-tax figure was after
net interest charges of £57500
(£99,000) and was subject to a
tax credit of £258,000 (£510,000
charge). Net profit was £517,000
(£718,000 before extraordinary
debit of £231,000)*.

P & O on course to meet
higher profit forecast

The Peninsular and Oriental hire will be paid or whether it tunnel provided ft Is financed
Steam Navigation Comp any ts o n will be adequately reimbursed emmnerSy Wi&out govern-

meat guarantees, he saad.

course for the profit improve-
ment forecast -'in Che annual re-
port, Lord Xntibcape, the Chair-
man, told shareholders at the
annual meeting yesterday.

Lord Inchcape also announced
his intention of retiring as chair-
man at the end of Jime 1983
though he will remain as a non-
executive director and become
deputy chairman. Mr Ian
Denholm, currently deputy chair-
man, will become executive
Chairman.

Despite the favourable trend
of the first four months a major
uncertainty surrounds tire four
ships requisitioned by the
government lor the Fad Wands
Islands operations. P&O does not
know wben they will be re-
turned, how much requisition

Cullen’s
improves in
second half

hesesi, he

for consequential
said.

Tbe recession in tbe U.S. is
possibly biting harder on the
West Coast than vjas anticipated
and tins la affecting erasing
operations. On the other band
remedial action taken in relation
to ferry activities is bearing
fruit and oril- relate d activities,
bankring and Australia are show-
ing up well, he added.

Commenting on plans for a
Channel Tunnel, Lord ImtSurape
said proponents of afl the fixed
link schemes had underes tima ted
tbe extent of the competition
they might face from ferries and
had consequently been unduly
op timisti c on their revenue
assumptions.

P&O has no objection to a

P&O is giving serious con-
sideration to stopping the
Hidtfiestaraugh to Sweden cargo
ferry run by Fe rry m a st ers be-
cause of industrial action by
merchant seamen and Middles-
brough dockers- This is an
effitoggt,. cost-effective service,
though the vessel involved, the
Elk, is now hi (he South
Atiaattc.

Asked about recent rumours
of a, takeover bid for P&O' Lord
Inchcape said there had been no
'in the com-
pany's register of shareholders
. and it took the view the rumours
.were not soundly based.

/ Overseas News, Page 8
" Men and Matters, Page 18

Underwriting losses
total £1.9m at Bupa

AFTER reporting losses of
£83450 against profits of £132515

'AN underwriting deficit of £L9m
was recorded for 1981 by. the

eoveoasts; improved by 15 per
cent from £7.2m to £82m, and

BIDS AND DEALS

Lamco
acquires
R. A. Brand

.Lamco Paper Sales, the
Fmotisti owned marketing- com-
pany, is acquiring JR.. A. Brand
and Company, a paper merebant-
ing subsidiary of Jefferson
Smarfit. The price is undisclosed
bat could amniHTC to several
million pounds. .

Lamco is the marketing sub-
sidiary of tile Fumish -Paper
Mills' Association (Firaxpep) and
supplies about 10 per cent of
the UKb paper market Lamco
felt that .it needed to protect
R. A. Brarcd’y market, position in
a sector which has seen several
takeovers . of paper men&azfting
companies.' It had already been
Brand's major supplier. -
R. A. Brand has four branches
in London, Manchester, Rugby
and Bristol with -a combined
sales turnover of about £L7m.
Lamco Is ' not disclosing bow
much it paid, to Jefferson
Smurfit but indications: would
suggest several million pounds
including a provision for good
will. ‘

Lamco - says ’ the acquisition
will fit I n it s existing business.
Zn 1(51 UK sales were £268m
and accounted for a quarter of
tbe turnover of . the Eizupap
group. R. A. Brand employs

in the first half, Cullen's Stores, British United Provident Asso- resulted in a surplus of £6 4m about 100 people and is mainly

mvtpar tirinp nraratf* Anri hPPT rinflAU fhn tortmof 1 am fVwm tha CIA 1 *n I

grocer, wine, spirit and beer
merchant, came hack into profit
in the second half, but the pre-
tax figure for 1981 as a whole was
down from £201,065 to £147,854.
Turnover from ' £19.09m to
£20-39m.

The pre-tax profits include
profit on disposal of fixed assets

elation, the largest medical
insurer, in the UK, against a
profit of £5.1m In the previous
year.

Subscription income rose by
28 per cent from £11 1.7m to
£143.4m, while benefit payments
climbed over 50 per emit from

IMWUL uu VUOKUOOI IA UACli INCU +_ M/n.-

amounting to £239,711 against , £142.3m. Bupa

£56,028. The final dividend is un-
changed at 3.6p net for a total of
4.3p.

In their interim statement, the
directors said turnover daring
the summer was disappointing.
Sales then improved in the
second half, particularly on the
off-licence side.

There was a tax credit Of
£56,046 against £454^44. and
after taking £7,700 (same) for
preference dividends, attribut-
able profits were down from
£647,709 to £196,200. Dividends
again absorb £86,000, leaving
retained profits of £110,200 com-
pared with £561,709.

Stated earnings per 20p share,
excluding profit on disposal of
fixed assets (net of tax) were
down from 7.43p to 144p. On a
CCA basis, there was a pre-tax
loss of £72,123 (£41,745)

TAGS’ PAY DAY

Antofagasta (Chili) and Bolivia
Railway (“Fags") says that
following receipt of fimds from
Chile, and in accordance with
the provisions of the scheme of
arrangement, the dividend of 7p
approved at the AGM on M ay 24
will be paid on July 5.

soften this increase by trans-
ferring £18.5m from its sub-
scriber benefit reserve against a
transfer of £3.1m in 1980.

• Nevertheless, a 26 per cent
jump in 'administration and
development expenses from
£17m to £2L5m meant that -its

trading operations last year
recorded a small deficit
Other income, net of tax and increases inevitable.

— less than half the £14. 1m
surplus of tbe previous year.

The number of registrations in
1981 increased by 12 per cent
from 1.25m to almost 1.4m.
Since . many contracts cover
husband and wife or even tbe
whole family, Bupa provide
medical Insurance for more
than 3m people.

Lord Wigoder, in Us chair-
man's statement, refers to the
problem of escalating costs of
independent medieme, while
BUPA has m ai n tained Its sub-
scription rates for as long as
possible. But he warns that a
rapid rise in both claims costs
mid proportions of ri»i™c
renders substantial subscription

involved in high quaJaty. print-
ing and packaging paper.

Wilson
(Connolly)
disposals .

J. W. Spear slips to £0.7m

M c CORQUDDALE

Specialist international printers

htJt

m

RESULTS

Half years ended
31 March 31 March

I'tt*

1982

1981

£000

£000

49,119

42,890

4-14%'

3.021

2,335

4-29%

12^1p .

10.33p

■4-19%

3.25p

2.75p

4-18%

jf'i

Ei

a

d&

Sales

Profit before taxation and
extraordinary items

Earnings per share
Interim dividend per share
Highlights from the Chairman's Statement’-

* Further advance continues the sound profitable growth
record of the Group over the last five years;

* Effects of the recent rationalisations, another solid
performance from the security printing activities and good
figures from the North American companies are the major
reasons behind th is improvement.

* Total orders received by the Group during the past six
months have shown a steadily upward trend.

* The Board continues to face the future with confidence.

AlastajrMGCorquodale, Chairman

mccorquodale plc
$jf * MCCORQUODALE HOUSE

. 15 CAVENDISH SQUARE
LONDON W1M0HT.

i

THE PROBLEMS facing tiie toy
mid games industry show tittle
sign of easing according to the
directors of J. W. Spear &
Sons, while reporting pre-tax
profits down from £963,000 to
£674JW0 for 198L Turnover
moved afoegd from £12. 6m to
£14. 67m.

After a loss alt the halfway
stage, second half profits were
ahead from £500,000 to £768,000
and a return to profits for the
full year was expected- However,
the directors say that another
first half loss seems likely.

They also say that it would be
unwise to predict yearond re-
sults in the current economic
climate, particularly In the com-
pany’s sector which is heavily
dependent on the latter half at
tbe year.

An increased final of 3.5p (3p)l
bolds the year’s total at 6p. Earn-
ings per 25p share were given
a 5 6.52p (I6.02p before extra-
ordinary Items and 9.83p after).

The directors point out that

the future maintenance of the
dividend must largely depend on
the achievement of ' a better
balance between dividends to
shareholders and reSfnsioas by
the group.

They add that it looks as
fhou^i many dealers, reflecting
the pressure they are under, will
place orders later in tbe year
than usual. Exports, however,
show an encouraging rnrprove-
menti

A substantial rationalisation
and cost reduction programme is
progressing satisfactorily, the
cost of which has been borne
by the parent company together
with The cost of strengthening
its own management team.

There was an associate loss of
£46,000 (rfii). Tax took more at
£366,000 (£280,000). Extra-
ordinary debits last time
amounted to £250,000.

Comparative figures include
tfae-SlO group of companies from
March 20' 1980.

On a CCA basis pre-tax profits
were shown at £388,000.

BANK RETURN

- |

Increase <+) or
Wednesday l Decrease (—1

June 0 1982 < for week

BANKING DEPARTMENT

Liabilities

Capital —

14,683,000
57,660,064
612,090,014
1,921,444^64 •

£

+ 3,789,608
+ 35,425,580

+ 136,780,975

Bankers Deposits...

Reserve and other Accounts.

Assets

Government Securities '

Advances ft other Accounts

Premises Equipment ft other Secs.

2,586,748,322

+ 168,366^47

734,620,304 1

1,154,275,736
680,060,823
16,433,022
358,438

+ 107,687,640
+ 16,601,587

+ 44,890490

- 842,603

+ 19,824

2,686,748,322

+ 168^66,847

ISSUE DEPARTMENT

i

UaMOtlei £

Notes Issued [ 10,700,000,000-

In Circulation 10,683,666,fi78

In Banking Department 26,463,022

Government Debt. j 1 1,016, 100

Other Government Securities. 1 3,073,363.321

. *

— 173.000,000

— 174,167^97

- 842,605

- 266,890,936

+ 91,890,956 J

1

i.

10,700,000,000

— 175,000,000

Mr L. A. Wilson, the recently
appointed chairman of Northamp-
ton housebuilding group, Wilson
(Connolly) Holdings, add another
director, Mr F. C. T. Wilson have
sold 253,780 shares and 247,500
shares respectively. The shares
closed lp down yesterday at 234p.
Tbe disposals, which account for
about 22 per cent of the equity
in aggregate, took place a week
ago through a placing with insti-
tutional investors.

The group’s brokers were Carr
Sebag and are now Grievesdn
Grant. The transactions reduce
the chairman’s holding to about
23 per cent and Mr F. C. T.
Wilson’s stake to about 2L8 per
cent The directors are under-
stood to have sold for purely-
personal financial reasons and
now intend to retain their resi
dual investments.

HENDERSON BUYS

RESIDENTIAL DOORS

P. C. Henderson Group is
expanding its operations into
residential doors with the acqui-
sition for £209,000 cash of a 75
per cent interest, in County
Doors, from County Home
Improvements of Farnbo rough,
Hants.

County Boors, a new company
into which County Home has
transferred all its door business,
imports hardwood residential
doors, treats and furnishes them
and supplies them to individual
customer requirements.

AB ELECTRONIC
BUYS CLEAKTONE
AB Electronic Products Group
says that in line with its policy
to develop systems business and
reduce reliance on component
manufacture, it has bought the
assets and goodwill of Cleartone
Electronics (in receivership) for
approximately £250,000.

The business previously car-
ried on by Cleartone includes
contracts to manufacture micro-
computers, including the Acorn
microcomputer chosen by the
BBC for its computer literacy
project

The labour force of about 120
will be retained, but some man-
agement changes are being
made. Under the new ownership,
the business will continue to
operate from the factory at
Abercam, Gwent, S. Wales, and
will be renamed AB Electronic
Systems.

SHARE STAKES

R. W. Too thill: Beaverfonn
group of companies has acquired

7.500 ordinary shares making a
holding of 65,500 shares (9.36
per cent).

Vosper: Sir David Brown as
a result of dealings .in ordi
shares between June 1 and
interested m 2.57m shares.

Cole Group: BJRLP. Securities,
a subsidiary of Bajair holds

334.500 ordinary (11J5 per
cent).

THE

GROUP

R Imperial riduMPH

Office and Electronic Machines P.L.C.

United Kingdom Distributors of Adler, Imperial and Triumph Typewriters, Text-Editors, Word Processors and Supplies.

Change from Electro -Mechanical
to Electronic Products Continues

Financial Highlights

1981

1980

Turnover

£22,645,245

£22,400,510

Profit Before Tax

£2,657,447

£2,524,961

Earnings per Share

25.03p

27.84p

Dividend per Share

7.5p

7.0p

Net Assets per Share

194.0p

176.6p

Copies of the Report and Accounts may be obtained from
The Secretary, 140-154 Borough High Street, London SE1 ILK.

The Group now has an
excellent raiige of
electronic products and .
I am confident that we
will continue to be a
strong force on die
office equipment
market.

W.F.J. GARDINER
Chairman

A All ied London

^ L 5^ Properties

IT pic

Interim Report

Increased Profits and Increased Dividend

sfc Confinued irtcreasein profits.

¥ Unaudited pre-tax profits for the half-year ended 31st
December 1981 were £752,027 (1930-£656 J 219).

* Interim dividend increased to G.275 pence per share
(1980-0.25 pence pershare ). .

sfc Board is of the opinion thatgroiip profftsfbr the year ending
30th June 1982 will be in excess ofthe previous year.

Interim Results for theGmonths ended 31st December 1981
Six months to \fearended
— ' 31 Deo 30 June

Profit before
Taxation

Dividend per
ordinary share

1981 1980 1981

£752,027 £656,219 £t,662£00

<L275p 0L25p . 1.35p

\-21st July 1382 "

9 HINDE STREET LONDON WtM 5R'G
. Telephone W'4861661TeteX8949t5

all-round progress

increased sofiftiy most,
areas of its business was the
mam factor - in Brown. Shipley
Holdings showing 4 recovery in
its profit from the tom level of
the previous yean After pro-
viding for tax and a transfer
to tbe inner resave of the baa*,
profits rose from £L54m to
£2. 05m in the year to' March 31
1982.

This comprised ba a to ag group
profits of £L2m (£859,000) after
tax and a transfer to inner re-
serve, parent company before
tax, £76,000 - (£73,000> . and
insurance group before tax;
£X.6ftm (£L27m).

Tbe directors say a further
significant increase in the profit
of the insurance group helped
to produce earnings of J7.1p per
share compared with 13 '4p'. Tbe
final dividend is effectively
raised from 3.75p to 4J25p net

■for a total of 7p <«ip adjtetsd)’,
Ddvideods . . .absorb - . £843,600
against <£734,000;

.' The .. cDnsoH&ted; T bidtece
sheet of tWifr; n»rch«at. bahfeer.
and i n surance ' brctoer r rirote- a
fall from' £4U*n ' to £23.62oi in
balances with banks end money:

at caH.^ . Treasury bffls-

tifcsconatedT and VcertBSc*tes'.>of
deposit: amquated to , £35.Q0m
<£725m)‘, and ^ Ouvern-

meot mid local awtbority securi-
ties totelled £Lfl2m (£7l29mL ’
Moody, to; .short- jmtice ‘ Is
shown as '- £45.'47m agatost
£28.74m. . -Other deptoate -wsISl
banks arid .locto : toitbbrflfes-
total £4tWin (£37^2m>; Loans,
advances - ' arid - - cither ’ accounts
were £l2734m • (£8&95in)^ r
. At--the, yediwa«li shas'rfmMeiB’
funds stood at £3237m com-
pared with . £30L78m> •_*.

earlier. ■ •. :•

Plysu reaps benefits
of improved efficiency

MAINTAINING the momentum,
which saw an advance from
£685,000 to £L05m. at mad-term,
Plysu. manufacturer of . plastic
containers and domestic wares,
finished Che year to March 31
1982 with pretax profits ahead
from £L39m to £2.0&iLr

Earnings per 10p. share are
shown to have risen from an
adjusted 9-5p to 10.9 p- and the
final dividend is 1. 55ft effectively
raising the total from 1B896P to
2.3p net A ohe-for-10 scrip
issue is also; proposed, with the
directors forecasting maintained
dividends on . the increased
capital for the current year.

They say -that the ' reported
profit improvement was mainly
a a result of ' greater - overall
efficiency*

The year’s; capital- expendfinrej
of £L73m included- further ip.
vestment in' blow, .idoul^ng-
: machinery. ■ - •

The ctmpany fc stitt
'ttis own in housewares ‘and .

of broadening outlets.;

New ontiets for . ptoridcs ^con-
tainers are being ecptca ssf ^and
prospecte are encouraging;-
firectoRt.toate . fs.

GroocV t hroover for the’ l 2
months totalled HtL97m
’(£16. 34m)’, with profits „ being
struck . after depredation 'W
£Lllm. '(£897,000) -and. inteest of
£1,000 (£74,000) but ihdudmg a
£67,000! '(£15,000) .. share . of asm-
dates and interest received ! of
£119,000 (£4,000): - Tax/ took
£714,000 (£220,000y< ■

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150

22

2

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140

16

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20

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25

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390

48

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78

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Raoal(o)

420

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390

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420

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Racal (p)

460

45

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RTZ (o)

390

20

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35

45

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579p^

RTZ (O

420

11

21

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460

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300

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480

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RTZ (P)

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127

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VaalRfs (p)

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EUROPEAN OPTIONS EXCHANGE^

12*4 NL 81 87-91
O
C
P

10&4 NL 80 86-06
C F. 102.50|
111* NL 83 8692
C F.lOBf
10 NL 82 86-89
P

F.110I 260 I 2JSO
: .112.sS — _

F.llOl 10 | OJ8Q

2 !. 1 M
11 I 1.00

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TOTAL VOLUME IN CONTRACTS: 4802 '

A^AS*«4 Bt>eid - : O=0a)| - •

■Financial Times Friday June 11 1982

^e ss

Caapaaies a erf Markets UK COMPANY NEWS

LCP falls £1.5nt and

ahead: rights issue cuts payment

— -i*

r-i/t

i - I-

■ ’ "... ~

lenev

options

AN INCREASE of 3316 j?er cent,
from £756,000 to t-LQlan sL ^o-i
tax profits , is ■ reported^ l>y the :
Bimdnghajn-based Applied Com-
puter Tecfa req aes (Boldinas) for
the year toMarcfa 31, 1982. At
the interim - stage profits' ^ .
increased from. £407,000 Mto
£476,000. . Turnover for the year
rose from £L15m to {8.37m. The
total dividend is raised' from an

adjusted. 0£p to Q,7p net wittrit'

finaJ 0.5p against 0.33p. ■

A one-for-eight rights issue IS
proposed: The directors and -
their advisers continue to teeL ft
is ■ right for the company' to.
adopt -a conservative' funding-
policy to ensure that its growth
is not prejudiced '• by lack of
financial resources, and to
enable it to take advantage of
the rapid pace of change in the
computer services industry.
Accordingly, they believe it is in
the interest of shar&olders to
enlarge the equity base. - V

While tt 4s *100 early in the
current frna noted year to make
any- forecast, they say trading
has started extremely well -in all
divisions and - the company
antiospates another satisfactory,
yea r. ,

' Since the end of March, the.
company has begun to receive
substantial deliveries of the ACT
Sirius I from .the VJS.. and the
board believes that sales of this
machine alone will account for a
major part of its turnover in the
current year.

Although . the group's cash
position remained strong at the
yewr-eud, the 7 high volUme of
Sirius sales in March increased
the debtors to £2£m — a Ugh
figure in relation to the year's

turnover.- Subsequently, -group
turnover has been running over
to per, cent .higher- than., in the
corresponding period 'last year.

This company has. needed
several cash injections during
the' year end. this had the effect
of.. diluting ACTs shareholding
in the company. As 3 result of.
.this .. and in the '■ interests of
prudence, the board has decided
to' make full provisions against
the. remainder of its investment
in. that company. /

. Stated .earnings per lQp share
improved -from 5.07p to _ 6-Qlp.

comment

ACT, has been running hard- to
keep up with its glamour rating.
In turn, the market has

responded, by marking up its
shores by nearly SO per cent
since the half-way stage. The
group is. stall pinning its fortunes'
'to the -expanding micro-computer
market; its blunder wtt& Coanpu-
Thrak has now been written -off
and its link-up with Sirius looks
more promising. Hie new 16-bit
machine accounted for some
£3m of the £1.4m March turnover
and appears to have V fair- lead 1
on the competition. But ACT is
going to be .©tagging it out- with
the big boy© toon and witt need
to lean heavily on its dealer
network to push out the pro-
ducts. The balance-sheet is not
stretched, but' ACT is raising
about £2m from shareholders in
order to keep out of debt Not
a bad Idea for a company wbtefc
operates - in such a fast-ciovtng
business. The shares dropped
7p yesterday to I91p where the
historic yield is 0-5 per cent. -•

' THE- DECLINE in pre-tax profits
seen by. tCP Holdings mid-year
/continued through the second
period and figures for the full
.year. to. March 31 1982 showed a
sharp - drop from £3. 61m to
£2.08ro’.. Second half profits
emerged £663.000 down on those
of the corresponding period at
£701,600.

To the light of the results the
directors are paying a reduced
final dividend nf l.8p. malting a
net' total of 3.6p, against 4.3p
previously. Stated earnings per
35p share before tax were 4.1p
(7.2p)- and on a net basis l,4p
(S.8p>. ,

• --Pull, year taxable profits were
Struck- after higher interest
charges of £5.25ra (£3.B6m)—
trading profits were marginally
ahead at £7.32m (£7. 27m) after
deductions of £378.000 (£33,000)
for discontinued activities.

Turnover rose from £2 06.39m
to £ 23 3.24m. A, -division break-
down of tthese figures and’ trading
profits shows: investment pro-
perty £4 An (£3. 98m) and £2.91 m
(£2.77ra); property development
£86.000 (£873.000) and £25,000
(£364,000); construction £9.1flm
( £13.27 tn) and £30.000

£1.7 m (£159,000). arising in the
main from rationalisation and
terminal costs within - the metals
division. There . was an
attributable 'deficit 6f £1.01m
(£2.76m surplus). -

On a CCA basis there was a
pre-tax* ..profit of £398,000
t£2.,09ni). •

most generous piece of tax legislation
mlkeivestemiwnlcL

comment

(£572.000); distribution £75.53m

(£74. film) add - £749,000

(£777,000) ; - metals £13.66m
(£20. 15m) and £319,000 (£138.000
loss’) : veh icle distrlbuff on
£1 05 08m (£88.64m) and £3 .54m
ffl.tora): overseas £1 7.69m

(£6.75m) and £2.13m (£1.3m).
Turnover of discontinued activi-
ties totalled £?.8m (£120,000).

Tax for the year took Fl.29m
(£603.000) and minorities
£100.000 (£93.000). Extra-

ordinary debit© amounted to

The $17.7m cash purchase of the
rest of Whitlock, hi theU.s:.
took' a heavy, toll in LCP’s
Interest costs. Combined with a I
related £7m goodwill write-off.
it has pushed gearing to a heady
,S0 per cent. But .the company
secs .this as a peak with a pro-
gramme of careful divestment —
beginning with the sale of the
brick company to Red! and. and
later to include the car dealer-
ship business — aimed at leaving
(he - group centred 'on Industrial
property, distribution and the
French D-I-Y ■ interests. With-
drawal from the loss-making
engineering side should be. com-
pleted by September . and has
been fully provided for; and the
current year should gain from
a slight pick-ttp. on the property
side where some 90 per cenl is
now let at worthwhile rates. How-
ever, much of the emphasis is
placed on Whitlock- bought at an
exit p/e of 7, which should con-
tribute at least double, at £3m,
just through full consolidation.
Depending on the rate , of divest-
ment Interest costs will continue
to be a determining factor but 1
the gloom . seems to be past
Yesterday’s worse-tint n-expected
news cut 5p off shares .to 54p
leaving the yield just undej 10
per cent.

3k In 1981, the Chancellor introduced an
exceptionallygenerous piece of tax
legislation designed to encourage British
entrepreneurs: the Business StartUp .
Schemes

2. Yburmoney'will be invested in
companies carefully selected and
subsequently monitored by TH Venture.

3k Under this scheme those who invest
directly in most new or recently
established companies can claim full tax
relief on their investment at thear highest
rate of tax. Thus a 60% rate taxpayer can
invest £10,000 at a cost of only £4,000
(plus expenses). 1 1

3k The scheme offers you an
opportunity to invest in companies at A
very early stage in their life and to share
in their growth prospects.

3. Vfru will get a spread of investments
in different activities.

Leigh Interests down but ready for growth

SECOND HALF pretax profits of
Leigh Interests, the environ-
mental services group; fell from
£540,000 - to £92,620 and figures
for toe full year, to March 31,
1982, were lower at £412,629 com-
pared with £2. 15m. Turnover
rose from £2Llftm to £26.5m_

, The directors ptopose.to main-'
tain the total dividend of 5.63p
het with a same- again final of
3.8p because they consider that
the current strength of toe re-
shaped business provides a firm 1
base for resumption of growth.
The company has made a steady
start to the year, which is con-
sistent with that View.

Integration of new businesses
with old has allowed ft to achieve
a reduction in overheads during
the last quarter of the .year at a
rate of £217,000.' per annum—
benefits of which will accrue next

year.

The directors say expansion
has been financed by toe issue of
additional shares, bank borrow-

ing annd disposal of. assets. Bank
indebtedness at the year-end
increased from £12m to £3.8ra.
Dtsposals of assets; other than
plant, yielded £960,000.

' This included the sale of the
company’s retail builders' mer-
chant companies. Hockley Heath
Building Supplies and Timmips
and Foulkes for £510,000 on
March 31,- 1982/ and a setlement
of parent qompany loans.

Acquisitions have- resulted in
ownership of some redundant
and under-utilised assets which
will requires “time for' disposal
or adaptation. They say that
programme is well advanced and
will, throughout tfip year, cop-
tribute to indebtedness-
- ’ - During the year, Leonard
Leigh, : a 1 specialist subsidiary,
increased-, its turnover from
£4.5m to £5-5m. Reduced. volume
and thinner margins In the UK,
coupled with the initial cost of
development .overseas, have

restricted results to break-even.

Another specialist subsidiary,
liottershead and Smith, increased
its turnover from S4.ini to £6.4m.
Trading profits increased In line
with turnover, but pre-tax
profits have been reduced by this
company's proportion -of group
bank interest charges, which
reflect re-location^ The company
is highly- geared for profit growth
as borrowings are repaid.

Group “pre-tax profit Includes
associate - companies' profits of
£488 against losses of £198.059.
Tax for the year was well down
at £1.402 (£258.997). There were
extraordinary fired its of £156.316
(£43.829) and stated earnings per
5p share fell from U.6p to 4.2p.
On a CCA basis, pre-tax profits
were down fipm £916,724 to
£1I5,80L

ability for the year to March 1082
will be another record". In the
event, pre-tax .profits fell to
about a- third, of .the previous
year's, figure. The recession
came late to the West Midlands,
but ri arrived with a vengeance,
and in order to keep contracts.
Leigh has had to out prices, in
some cases by as irfuefa as 40
per cent. Things could have
been even worse: without a first
time contribution from the
Derby group, profits would have
been only about £150,000, and
the sale of SabJex meant elimina-
tion of £200.000 ' Of associate
losses. Leigh's acquisitiveness
over the year bis considerably
broadened its geographic ' base
but it has bad to pay out £600,000
in interest charges.

ABOUTTHEBA^ILDON FUNDS
The Basildon Funds are managed by
TnVenture, which was formed on the
initiative of Laurence, Prust & Co* a firm
of London stockbrokers, and two
entrepreneurial businessmen. The
executives of.THVenture have the sltill
and experience required to select the
right companies and nurture them to

HOWTO APPLY

To get full details of the Second
Basildon Fund fill in the coupon below

Hou are strongly advised to take
professional advice before making any
investment in the Second Basildon Fund
and are reminded that investment in new
business carries high risks.

The minimum investment is £2pOQ.

Remember the dosing date is
29th June, 1982.

Professional advisers should contact
Christopher Anderson or David Bateman
on 01-606 881L

The Second .

I Basildon Fund !

success.

^ The first fund* launched in October
1981, raised over ^ million and
investments have been made in several
young companies with a wide range of
activities.

"foil now have the opportunity to
invest in the Second Fund, which is open
for subscription until 29th June, 1982.

• comment

Eleven months ago . Leigh
Interests .believed that “ profit-

The maintenance of the divi-
dend. albeit uncovered, lent
support to the share price which
fell 2p to 94p, yielding 9 per
cent.

HOW THE RISKS ARE REDUCED
L The tax relief substantially reduces
your cost of investment •

To: THVenture limited, Lauriston House,
Montpellier, Cheltenham, GIos,

Please send me full details of the
Second Basildon Fund.

My professional advisers are

(if applicable)

| j

are gathered within the i Skanska Group. •

• Skanskas technicians and administrators have
the iknow-how and experience to handle all stages

28

CoBpaaies and Markets

Financial Times' Eri&ay : Sxrne

INTERNATIONAL COMPANIES and FINANCE

Control
Data sees
further
downturn

B/ Paul Betti in New York

CONTROL DATA, the U.S.
computer and financial services
concern, expects profits for the
second quarter of this year end-
ins dune 30 to be somewhat
lower than the $1.01 a share
earned in the previous three
months.

The company told securities
industry analysts yesterday that
lower second quarter earnings
were due to the current slow-
ness of the marker for its pro-
duct and services. The directors
■warned earlier this year that
they did not exppcl a recovery
until the second half nf 19S2.

Control Pa la’s earnings in
19S1 were Sl.Ofi a share in the
first quarter and S1.13 a share
in the second.

But the company, which
earned $l71m or $4.48 a share
on revenues nf $4.2bn last year,
said it still expected to report
higher earnings for 1982.

Poor second
quarter for
American Hoist

By Chir Financial Staff

SECOND -QUARTER profits of
American Hoist and Derrick
have been bit by high interest
rates and a slowdown in energy
development projects.

Earnings for the period
amounted to only $795,057. or
12 cents a share, compared with
S4.99m. nr 81 cents a share, in
the corresponding 1981 period.
This brings the total for the
half-year tn S1.3Sm. or 21 cents
a share, against $8. 54m. or $1.38
a share last year.

Half-year .sales totalled
$239.4 m, against $163.5m last
year, with the second quarter
contributing $97.5m. against
5116.7m previously.

Earnings this year have been
reduced by $453,000 hecause of
the adoption of last-in/first-out
stock evaluation.

The group, which is a major
U.S. manufacturer of heavy
lifting and construction equip-
ment. has been restricted in the
last year or so by the weak
economy, and the directors now
report that they do not antici-
pate any significant .improve-
ment in its business environ-
ment this fiscal year.

The current recession, says
the hoard, has impaired the
construction and capital goods
industries, resulting in severe
reductions in business

Hungary in loan talks with
Manufacturers Hanover

BY DAVID BUCHAN IN BUDAPEST

HUNGARY has been holding
preliminary talks with the lead-
ing U.S. bank. Manufacturers
Hanover, on the possibility of
raising a syndicated loan on
Western capital markets, the
managing director of the
Hungarian National Bank said
yesterday.

Such a loan would be a break-
through for Hungary which was
last able to raise Western finan-
cial credit in April 1981. It
would also be significant in the
light of the Western leaders*
agreement, at the recent Ver-
sailles summit, to restrain
Western lending to tljp Com-
munist bloc, even though tiiat
move focused primarily on
export — rather than financi-
ered!.

Dr Kalman Mesaairos said
Manufacturers Hanover had not
yet been given a formal man-
date by the National Bank to
lead any loan. ‘No final decision
has been made on either side.”
he cautioned. . Neither the
amount nor the interest rates
have been fixed, he said, making
dear that Hungary was not keen
to pay a premium rate.

Hungary has $867 jii to repay
in principal- oh medium and
long-term loans maturing this
year. With only, a modest hard
currency trade surplus of
$140m in the first quarter of
this year, ix has bad to run down
convertible currency and goW
reserves “ substan Sally ". from
$l.83bn level at the end of 1961
Dr Meszar«s said.

So far this year, the Hun-
garian National Bank has
■borrowed $210m from fellow
central banks through the Bank
of International Settlement, an< t
also made some bilateral bor-
rowing. Dr Meszaros said. Hun-
gary hopes to borrow, perhaps
by the end of the year, from
the International Monetary
Fund which it joined last
month.

Dr Meszaros believed that a
syndicated loan led by a major
U.S. bank could send a powerful
psychological perhaps even
political, signal to the markets
especially in Western Europe.
Particularly after the Versailles
meeting. “ West European
banks might feel s after under
the U.S. flag.

Seagram earnings slide sharply

BY ROBERT GIB BENS M MONTREAL

SEAGRAM, the world’s largest
distiller and also owner of a
near 21 per cent stake in Du
Pool the U.S. chemical group,
has confirmed the fall in tfiird
quarter earnings indicated last
month.

Net earnings for the period
dipped 10.5 per cent from
US860IU to US$53.7m or $1.73
a share, witsh revenues holding
firm at $607. 4m against
$605.8m. But this year's earn-
ings total includes S14.8m or
51 cents a share from the Du
Pont stake, acquired last year
when Seagram lost nut in the
bid struggle for Conoco. Exriud-'
ing this figure indicates a

profits fall of 35 per cent

The directors said that inter-
national revenues were higher
in local currencies but declined
in dollar terms because of the
strength of the U.S. dollar

Adjustments equal to 36’
cents a share have been made
to last year’s comparative
returns to cover currency
transmissions.

At the nine-month stage
Seagram. in which the
Bronfman family trusts hold a.
39 per cent stake, shows net
earnings of $219.6m or $6.85,
against $2.l6bn or $40.36: but
last year’s figures' include a
special gain of $34.85 a share.

This year's nine-month total
takes in $1.78 a share from the
Du Pont interest.

Wall Street analysts had been
looking for higher profits from
Seagram at the end of this fiscal
year, and for the first half,
earnings were moving ahead.
But the board warned at the
beginning of May that . the
recession was cutting into its
business.

Strong growth overseas is
expected to fuel sales this year.
At present,, international sales
are about 38 per cent of the
group total but the board hopes
to see the proportion around
50 per cent by 1990.

Mattel bounces back to

BY OUR FINANCIAL STAFF

A SHARP rise in sales of
components and cartridges for
its I-ntelliviMon video game has
brought a turn round from loss
into profit in the first quarter
at Mattel, the electronic toys
and hobby company. The
directors pointed out that ship-
ments of InteMivision were held
back last year by the relocation
of manufacturing facilities.

Sales jumped from $I91m to
$29Q.4m in the opening quarter,
and -net profits of $17.1m or 67
cents a share diluted compared
with, a loss of $4-2m in the
comparable period last year.

The upturn, said the directors.

reflects "particularty . strong
operating results'" in the
electronics and -toy and hobby
divisions, which account for
almost all the group’s, earnings.
Sales for the toy and hobby
section increased by $3 1.2 m to
$130. 3m, but the strongest rise
came in electronic toys where
revenues leapt by $107.2m to
$H9.5m. . The relocation of
manufacturing ' facilities

involved production for the
Orient, for which “significant
production ” was not under way
until April last year.

Sales -of the • printing' and.
publishing divisions, - usually

around - 25 per cent of group
total, dipped to $53.5m in the
latest quarter while revenues of
the entertainment division
collapsed.

The fiscal year to January last
saw a recovery in earnings to
$L68 a share ‘from the 12 cents
of the previous year

For this year, analysts have
predicted a gain in earnings,
with traditional toys and also
the Inteilivision -game expected
to make a good showing.

About 35 per cent of group
profits come from sales outside
the U.S.

£30m bond
launched
for Norsk
Hydro

By Abn Friedman

UNDAUNTED BY the depar-
ture last week of • seven
senior executives, Hambros
Bank has launched a S30m
Eurost erling bond for Norsk
Hydro, the energy, petro-
chemicals fertiliser and
. metals group 51 per cent
owned by the Norwegian
Government.

The five-year Issue, bearing
a 141 per cent eoupon at par,
is the first financing to be
undertaken by Norsk Hydro
in the Eurosterling sector.
Proceeds will 'be used partly
to develop oil and gas fields
In the North Sea and partly to
refinance short and medium-
term debt

Mr Rupert Hambro,
deputy chairman of Hambros
Bank, said last night: rf A lot
of people say we’re not going
to do any business in Norway
again. 1 personally feel this
demonstrates we haven't. been
seen off by the Norwegian
government"

- in the Eurodollar bond
market yesterday Nomura
announced that Chugai Phar-
maceutical's $40m 14-year
convertible bond was being
cut to $30m. Nomura said
“ demand was insufficient ** to.
sell $40m of bonds. The
per cent bonds provide a con-
version rate of Y709.6 per
share, against' yesterday's
Tokyo equity price of T779..

The fate of Canon’s SSOin
16-year convertible bond, will-
be decided today when it is
priced by Yamaichi Securi-
ties. a day late. The -bonds
already bear a 7 per cent
coupon, but it is understood
that less than $10m worth has
been sold. The paper con-
tinues to sell at discounts of
3 per cent and more.

Elsewhere in the Euro-
dollar sector, prices continued
their downward trend, some
issues falling by up to a point.
This market Is very nervous
about the short-term outlook,
with some dealers worrying
about a further , significant
decline in prices following
this week’s unhappy perform-
ance.

The new straight bond
index of the last 100 new
issues in the Eurodollar
sector, compiled by Ross and
Partners, stood yesterday at.
968.89. down two points. The
index is calculated on a
weighted basis.

Consolidated losses
of FFr 290m
expected at Michelin

BY TERRY DODSWORTH W PARIS

FRANCE’S -MicheHn tyrerCgroup
is expected to declare consoli-
dated losses of around FFr 290m
($46m) for its 1961 financial
year at the shareholders meet-
ing to be held latef this month.

A warning of a " significant ~
deficit was given, by the group
last* month, when if announced
net losses of FFr 662m in
Manufacture Franchise ' des
Pneumatiques MicheHn, its
main operating . subsidiary in
France. But the consobdafted
figure, revealed, in a letter sent
to shareholders in advance of
the annual meeting, hr worse
than expected. - •

The dip into losses follows a
steady . decline , in Micbetin’s
consolidated profits oifer the'

last few 1 years. ^In .- IBSff. they
dropped to FFr :! 304m, com-
pared with FFr .59^n in 1979.

MScbahn was hit Jtart year by
a number of factors, includmg
the cost of financing high stock
levels ■ resulting./ from 1 the
vehicle sales - -stamp, and ex-
penses attached to , various lay-
off measures. It' also lost money
through the.'- tightening..
French exchange controls.- -

St is understood that the con-
solidated loss . figure does not
include the -deficit run up by
Kleber-Cktfombes, the second
largest French ; tyre manufac-
turer, in - whkfh Micheffin took
a majority stake last year:
Kleber"s losses- amounted to
FFr 288m last year.' :

Government aid plan for
French newsprint industry

BY DAVID HOUSEGO IN PARIS

THE French Government has
decided to back- fresh investment
to .preserve -a domestic news-
print industry m France.-
Final details of a financing
package by a consortium of
nationalised French banks are.
being worked out to, provide
funds for the first phase of
investment for expansion at
Grand Couronner-one of- the
two • Rouen-based- newsprint
plants belonging to Chapelle
darblay. the large French 'papejr
manufacgjrer. which
bankruptcy in December 198p.
The expansion is due to begin
this summer.

The. Government intends to'
expand newsprint production
at Grand. Couronne to: 140,000
tonnes a. year from 120,000
tonnes. But the main aim would
be to achieve substantial - cost
and foreign exchange reduc-
tions through using- waSte paper
and French grown wood as raw

materials. Total , ..investment
would be , FFr 400m ($63.5mK
-The plan, follows the lines of
a scheme put. forward by the
large Swedish ’ paper manufac-
turer. Stdra' Koppariwrg, which
was called in - as consultants.
The Government .wants Stora
to have s shareholding in- the
new company; to 'be formed to
ran .the Grand' Courotme plant.
The State will hold .a! majority
of -the: shares. A Stora share-'
holding is seen as a test of its
filed for' confidence in the project. •

-The investment plan , would
Involve the break up of Chapelle
d’arWay. • ‘ ,

- It would also leave open the
future of Chapelle Da rb lay’s
other main newsprint plant of
St Etienne du-Rouvray, also -at
Rouen. . ■!

The bank’s' ebrsortium would
initially own . the equipment
installed. Loans would be on
concessionary • terms.

Goveiritrient

forFllbi*

By Walter Efl jt* fo. Amatenbm.

HOOGOVENS. the ^Netherlands?
main steelmaker, - has asked the
Dutch Government “for .Fl'.lbn *
in aid ‘to help ,iit carry ^out a
FU3bn (Siabu) x^tturinrine-
programme between now; and
1985.' .. •',* '

Last year* • EsteL^fce Dutra-
WesL, German .s}i»l group -iit:
winch . Hoogovens ' is partnered
by Hoesch Werkfi,- .made^a'iloss'
of FV 893m: Witt) out Hoefrii '
its Tosses would have, been slight
dan It. .sajs that. .ind^«»d«nt
restructuring can
- profit- within three years..

. What ‘the Dutch . GoTOrmpent
will- make Of the request., for.
FI lbn is far from clear. -The
Prime ' Minister. Mr; Drips jran .
Agt, is in .favour 6f heJpirig dnly
those industries which riie con-
siders' have a:. real fut ure,: a nd.'
the. European steel sectorgener-
ally is likely to'remain depfisswasL
for years to come. .-•>.• '£*■ 1 ‘

- If the Government does- come-.,
up with the money. ^Hoogoyena
would stili be left with the pro** 1 -
lero of raising the romainm g:
Ffejiba from its ownrewtac«r
and- front the capital jnartceta
It believes .that any .confidence,
reposed' in it' will " be repaid^ in
a sbort time, especially ilTJfitfr
Estel* De-merger can-;; >e .^cqin*
pleted quickly and WLfavburable.
terms.;..;;

Hoesctg for its part, teaming,
to force Hoogovens to roma-up
with 50 per cent of the aceaittuC
lated Estel debt since. 1975. of-
F12.9btu>; The Dutch company
insists, however .that the 'great
bulk of- of the Josses Were-'made
by 1 Hoesch and that its share '
is a mere FlTOOtn. and-it- is drf
this point that a great' deal bf-
uncertainy hangs. . Victory- for
Hoogovens in the' dispute could '.-
indeed make'- ’-'ft -potentially,
viable; defeat would make any
attempted rescue that much
more hazardous. v .. "

. Hoogovens '. says that it wfil.
make only . a small loss this yqar
and that by 1984/85 it will pro-:
duce a pre-tax- profit of seme
F1300UL: V

FT INTERNATIONAL BOND SERVICE

The list shows the 200 latest International bond issues for' which an adequate secondary market
exists. For further details of these- or other bonds see the complete. list of Eurobond prices which
will be published next on Wednesday June 16.. . -^ - ' ”' Closing prices on. JunelO

Bim^cmnudreportc fNxtionde-^^

A carefiil expansion policy.

Our keyto increased revenue, despite
the economicrecessioiL *

by 12% (as in 1980). In the Netherlands alone, revenue
grew by 9.5% to stay comfortably ahead of the 7% infla-
tion rate. Revenue grew in other countries by 155% in
temis of local jcurrendes, and 235% in terms of
guilders.

. The contribution to total premium income from
international business (including professional rein-
surance) increased from 49% to 53%. Sources outside
the Netherlands accounted for 38% (37%) of life in-
surance and 58% (51%) of the non-life sector. All of
........... , _ which proves that Narionale-Nederlanden has done

>. notably well by its careful expanaon policy.

Our 1981 figures show that our cautious expansion • Prospects

policy is a sound one. Revenue has grown, tiianks to Despite continued recession, we anticipate a growth

able management at home and the success of a long- of revenue for 1982 that will take u$ well beyond theDfL

established policy of forming alliances with companies 30 billion mark. Looking further ahead, we are equally
in other countries, which are then left to be aefanmis- confident that the expertise and dedication of our
tseiedbylocalmanagemen^answeiabktolocalboard& people will continue to strengthen our position in the
r, ^ . world of international insurance.

Expansion

As the largest insurance group in a not so large,
country, Nanonale-Nederianden has significant, but
modest growth objectives athome; but, as a major inter-
national company, we have a long tradition of growth
based on acquisitions abroad.

This tradition was continued in 1983, when an
importanr step was taken to broaden our interests in
Australia by purchasing a 50% share of Mercantile
Mutual Holdings Ltd. of Sydney* (Not consohdated in
the 1981 annual report) This move not only increased
'our premium income in Australia .tenfold, but also
strengthened our position in the whole Pacific area.

Jn die U5 A, we acquired the First of Georgia
Insurance Company, of Augusta. This property and
casualty company, specializing in fife insurance, repre-
sents an extension of the non-life business, geographi-
cally and in terms of the composition of the portfolio.

Revenue

Total revenue grew by 17% (16% in 1980) to reach
DfL 9.4 billion. Excluding newly acquired interests, and
fluctuations in currency exchange rates, revenue grew

| Results Overview |

1981

£m

1981

DfLm.

1980

DfLm.

%plus

1,494

491

Premiom income

Investment and other income

7,082

2,327

6,078

1,954

17

19

1,985

Revenue

9,409

8,032

17

128

I

1

605

547

11

83

Netprofk

396

356

11

I Prqfit per share of DfL 10.00 - J \

£

DfL

'DfL

A M

Net profit •

23.03

21.67

6

1.62

Dividend

7.70

6.74

14

To receive more detailed information about our
performanceinl981,ask one of our affiliated companies
for a copy of our English lang ua ge annual repeat, or
send to: National e-Nederlanden N.V - International
Division, Prinses Bearrixfaan 15,2595 AKThe Hague,
the Netherlands.

Nationale-Nederlanden

Affiliated companies, in Great Britain and the Republic ofb’dand rThe Orion Insurance Company P.1LC. 7Q-72 KipgTPilliam Street^
London EC4N 7BT. The Life Association of Scotland Limited 10 George Street, Edinburgh EH2 2YH. Merchant
Investors Assurance Company Limited. Lewi House. 233 High Sffeel, Croydon CR91LP. Life Association Ireland Limited.*
49 Sl Stephen’s Green, Dublin 2. Crescent Life Assmanoe Company Limited.* 14 New Bridge Streep Tendon EGL

SBMM

World Rank
seeks change in
borrowing rules

B Y Peter Morrtajnon,
Euromarkets Correspondent

THE WORLD BANK is to ask
its board within the next few
weeks for authorisation to
borrow on international capi-
tal markets -at variable rates
of Interest.

This would mark a radical
change in the bank’s approach
to the markets where It has
hitherto borrowed only at
fixed rates. Implicit in the
nrnpospd change is the possi-
bility that developing coun-
tries which borrow from the
bank may also face ' regular
ad last meats in the interest
ratos Ihey are charged.

A plan to introduce vari-
able rate borrowing has been
under study by the bank’s
staff for almost a year — it. was
first disclosed by Mr Eugene
Rotherg. the bank’s treasurer,
as Jong ago as last October. ■

It sttfms from both the
volatility of interest rates and
the hank’s heavy borrowing
requirement, but even npw
that authorisation to intro-,
dupe the change is being -
sought, hank official^ stressed
that the changes could he less
radical in practice than, they
appear at first sight
What the hank is seeking
is the flexibility to borrow at
variable rates, if necessary.
The change would not mean
that the bank would. Immedi-
ately acquire. a high profile in •
the floating rate note . market
One instrument which
might have more appeal is
the retractable issue, a fixed
rate bond where the eoupon
changes periodically, . say
.every three years. The bank
has not yet used this type of
security, which has been
developed by other borrowers
in the international market '
Any decision to use variable
rate borrowing would also
depend on the market,
situation prevailing at the
time. Despite . volatile,
interest rates, the bank has
managed to' raise more than
its original $Rbn target so far
this fiscal year, which ends on
Ju.ne 30.

'But its Interest costs have
risen sharply, partly because
this year has - seen a higher
proportion of borrowing in.
expensive currencies ’such as
U.S. dollars. Whereas the
average rate of interest, paid,
by the bank tn 1980-81 wap
around 9 per cent, this year’s
average rale Is about 1L. per
cent.

This higher cost is placing
a squeeze ou the bank, whose
loans to developing countries
hear interest . at a rate fixed
permanently from the outset.

It is thus effectively having to
fund old loans at a rate of
7 to 8 per cent with money
costing 11 per cent.

100

•too

200

50

160

75

GO

100

U.S. DOLLAR
STRAIGHTS
Aetna Ufa IS 88/97 ...

Amax Ini. Fin. 16 1 * 92 76

Amu* O/S Fin. t4V 8Q .76
APS Fin. Co. Itt, 89 75

ATT WV 89 400

Baker Im. Fin. 0.0 92 225
BHP Finance 14A 89 .. 150
Bt.-Amer. NTT SA 12 87 200
Bk. Montreal 14H 87 ..,

Bcoe. Indo Suer 15 89
British Col. Hyd. 14*89
Burroughs Ini. 15V 88

Cenadair .15** 87

Canadian Pac. 14* 92
Carolina Power 16*i 89
CIBC 16 87 . . .

CihCorp O/S 7S 84/92 ' 100
Citicorp O/S IS 1 * 85/97 125

CNA 15 7 , 97 - 75

Con.' Illinois 15* 89 ... 100
Duka Pm. O/S 15»» 89 60
Oupont 0/5 Cap. 0.0 90 300

ECSC 14V 87 . 50

EIB 15*i. 89 150

Eksportfinans 14t, 89 60

Gen. Elec. Credit 0.0 92 400
Gan. Elec. Credit 0.0 93 400
Getty Oil lnt. 14 89 ..." 125
LGMAC O/S Fin. 16 8 T 150
GMAC O/S 15V 8S/97 100
GMAC 0/5 Fin. 15 89
GMAC O/S Fin. 15 87
Gull Canada Ltd 14V 92

Gulf Vil 14V 94

Gull Oil Fin. 0.0 92 ...

Gull State* O/S 16 90
InvAm. Dv. Bk. 15S87
J^pan Dew. Bk. ISP, 8T
Neva Brunswick 16V 89
Ontario Hydro 14V 89...

Pec. Gas. & EL 15V 89
Pac Gas & El. 15V 89
J. C. Penney Gl. 0 0 94
Philips Petrol 14 89
R.J. Bynlde. O/S 0.0 92
Saskatchewan 16 89 . .

Shell Canada .14V 92 . .

Soain 15V 87 100

Superior O/S Pin. 14 B9 125
Swed. Exp. Cr. 15V 89
Swed. Exp. Cr. 14V 90
Swed. Exp. Cr. 0.0 94
Union Carbide 14V 89
Welle Fargo I. F. IS 87
World Bank 15V 88 ...

World Bank 14V 87

. Change 1 on

leaned Bid Offer day week Yield
’150 100 100V -0V -IV 14.88

UMV 101V — 0V -2 15.93
95V 96V +0V -IV 15,20
100V 1IXft*-0V -IV 16.02'
100Y1on\ -0V -IV 14.06
126 26V .-0V -0V 14.77

97V 97V -0V ~ OV Iff .31
90V 91V 0 -IV 14.73
96V 97V -OV -IV 15.40
97 . 97V -OV -IV 15.66
WV 08V 0 -IV 15-12

IfflV 101V 0 -IV 15.32
99V 100V “OV “I 15.48
96V 9«Ji -OV -TV-15>30
101V 101V -OV —IV 18.08
1Q0V101V -OV -IV 15.66
99», 100 -OV -OV 15.08
B9»* 100V. 0 -IV 15.40
;‘99V 99V -OV -OV 15.90
100V 100V 0 r1V«9<
98V 9«Pi O -ZV 15.88
35V 35V. O -OV 1491
98V' BN ft, -OV 15.20
99V 99V -OV “OV 15.57
861. 96V -OV -IV 1533
26V 27 — OV -1 14:58
24V 24V +0V -OV 14.12
96\ »7V +0V -IV 14.73
100V 101V 0 -IV 15.55
9BV 98V 4-OV -OV 15.93
96V 86V 0 • — ZV 15.85

97 97V -OV “1 15.82

96 DP, 0 -IV 1697
97V 98V 0 — OV 149®

26V Z7V -OV -OV 14.41

98 S8V +0V -IV 16.38
981. 96V O ~ IV 15.47

101V 102V -OV -IV 14.77
101V-W1V -OV -2V 15.81
98V 93V -OV -2 14J4
102V 102V O — OV 15.06
100V 101V -OV -IV 15.18
2av 20V- OV -IV 14-58
94V 95V -OV — 2V 15.20
28V 28V -OV -*0V 14.63
101V 101V -OV -IV 15.57
96Y 97V -OV -IV 14.94
99V 99V +0V -OV 16.85
94 94V +0V — OV 15.40

98V 98V O -OV 15.61
95V 95V +0V — 0VK.77
19V 20V -OV -IV 14.74
88V 98V -OS -IV 16.09
98V 99 -OV -IV 16.33
99V 99 V; 0 -OV 16 J3
95V 96V — OV — IV 15A9

.I-

1*
100
100
17B
300-
BO
55
to
75
150
80
. 46
350
200
400
125-
125. 1

100

WO

too

150
• 75
250
600

Average price change*... On day — OV on week —IV

ISO

300

200 '

WO

200

100

100

DEUTSCHE MARK ' '
STRAIGHTS

AvBn Dev Bank 9*. 92

Australia 9V 91

Australia 9V 91

Barclays O/S In. BV 94

Canada 8V 89

Camp. Tel. Esp. 10V 92
Crsd. Fancier BV 92 ...

Denmark 10 38 100

Denmark 10V 92 100

EDF 9V 92 ' 100

EEC 9V 94 . 1 ZOO

EIB 8V 92 ;.. 100

lnt. -Am Dev. Bk. 9 92 150

iraiand 10V to . 100

Nacnl. Financier* 11 SO-. 150

Nat. West. 9V 92 100

OKB 9V 88 . . . . .. 150

Philip Morris 8V 90 ... 100

Quebec 10V 82 ISO

Renle 10 92 100

Tauam autobahn 9V 94 go
World Bank 9>, 89 ...... 100

World Bank- BV 92 200

Average price changes

.Cheng* on
Issued ' Bid Offer day week VteM

'38'. . to -OV -IV 9-4S
"302V IMS' 0 -1 8.96

"fOZV 103 ■ +0V -OV 8h1
*95 95V— OV “IV 9.04

•IOOV IOOV ,-OV -OV 8.42
"WO 100V -OV -OV 10-44
"96V - 97V -OV -1 9M
•WOV 100*, -OV — OV 9.86
101V T02V “OV -OV 9.82
•IOOV 101V -OV -OV 9.74
102*. 103V -OV +0V 9.30
*95V 95V r-'0». -IV 9:10
*98V 98 V -OV -OV 3.23
'101V 102V 0 e-OV 9.66

•98V 99 -OV -OV 11-23
H»V104V'-0V 0 9J5

101V 102V 0 -OV 9^8
•99V 100 -OV -OV 8.31
•103V 103V- 0 -IV 9.54
•99V 99*i —OV- -OV 10.06
101V 102 -OV -IV 9.61
101V 102V -OV 0 8.06

•95V 96V; -OV -IV 9.08
On day — OV. on weak — OV

100

80

100

100

50

25

.100

wo

25

30

SWISS FRANC
, STRAIGHTS

{ Air-Canada 6V 92

Asian Dev. Bank 7 92...

Aiicalaa 7V 92

Australia 6V44 ..

Caa. Nat I’Energio 7 92

CFE- Mexico gi. 82 ... .
Co-on. Denmark 8*. 92
Crown ZeHrbcH. 6V 92
Europarar 7V 92 ; ....

First. City Fin. 8V to-.:
ind Fund Finland 6V 92

Kobe .City 6V 92 ...- 100

Kominuolana 7V S3 36

Manitoba 7 92 100

Mitsui 0SX.8V M .. ... 100
National Pwr. Co. B 92 '30
Nippon T. and T. 6V 92

OKB 7V 92

■Oat.' Poataper 7V 92 ...

Philip Morris 6V 92

Philip Morrla BV 94 :...

Quebec 7V 92 '

Rente 7V 92

Sakisiri Pre- 5V92 WW
Soe. Lux. do Cm 8V 92
Vorerlberg Kraft fir, 92

Change on

Issued Bid Offer day week Yield
100 100V 100V -OV — OV 8.2X

100V 100V -0*« -OV 6-96
97V B7V -OV -IV 8.10
102V. 102V -OV -OV 6.16
100V 101V -OV -OV. 6.85
88 98', -OV — OV 8.51

t104 104*2 — OV -OV 7.73
IOOV WOV r-.OV -IV 8.57
100V WOV-OV -IV 7.16
102V 102V -IV —IV 7.88-
98V 98V O' -OV 6-88
99V 99V -OV -IV 8:i8
IOOV 100V -OV — OV 7.18
105 WSV-OV-OV a -27
89V WOV “OV -IV 6.60
103 KB>, -OV -OV 7.53

102 WZV'+OV-IV SJO .

103 103 1 ! -OV— IV 7 Jtl
102 102V -IV -IV 7.18' •
102V 103V -OV -1 E.2B
100V 100V “OV -IV ■ 6.20
104V 104V -OV -OV 6.71

88V 98 . — OV— IV 7.92
102V 103V -OV — IV 5 to
106V 105V — DV+OV 7.17
102 .1021. ' 0 — OV 6.45

.100

100

WO

100

100

100

80

70

80

60

Avenge price changes... On dey — OV an week — IV

on

YEN STRAIGHTS issued Bid Offer -day week Yleid

Allan Dev. 8k. 8V 91... IE 99V 100*i'-OV -OV 8
lni.-Amer..Dev. 8V 91... IS. 1O1V102V-0V -1 8 to

Japan Airiine* T, ■87... 9- 86V 96V -OV-OV 8 to

Npw Zealand 8V 87 ... 15 89V WO 1 , -OV . 0 8.37

Wnrid Bank BV B2 20 S8V 99V -OV +0V Bto

Average price changer,,, On day -OV on week -OV

- • - ■- - ; v Chinflftffn

OTHER STRAIGHTS ; leaped Bid Offer day nwoek: YIsW
Bill Canada. 16 89 CS.> 100 ■ . f8S: -95V -OV “IV 17.1#
Can. Pac- S. 'IBV B9 CS to -- . f98. 88V r O T -OV 16.7*
-Crd -Epncier.U?c-89.C* to^_i99- 99V -.-O' , -OV, 17^29
Hudson Bay 17 89 CS... 40 tSBV 98V -(& -IV 17 to
Q. Hyd.lBVW <M*1 CS SO tSBV 9BV' 0 - -OVISto

- _ _ 50

•-••40

'ISO

•••75

60

7S.

Quebec Prow. -16V 89 CS
Simpson* 16V 89 CS
U. Bk. Nwy.'SV 90 EUA
Amro Bank 10 87 FI ...
Bk. Mess ft H. 10 87 FI
Eufofima KFj 89-F1 ......

Ireland 10«* 87 l=l

199 -9BV«*V:+0V1fi.B2
W6 v 96V 17.68

88V 9OV 0 1-OVllto
- 99. BBB, o4riOV 10.W
98V toV-«firC-0V30to
IOOV 100V +0V -s-OVTOto
OBV W -OV TPVIftBO

Phil. Lamps 10V Ml F|. t . .100 r '99V WOV -OV -fov w.20

■ Wiwtd Baiilc' TO 87 fl ;.. . 1»
0 ICS '14 86 FFF ....»'4q0'.
* « C; 14V 88 FFt 200

Acona 14 85 E
; Beneficial 14V .80 £. fD>..'
•BNP- 13V' 91. t

CECA 13V 88 E

Fin. Ex. Crad; 13V 80 -£
IGen: Elec. .Co; -T2V-88 E
; Hiram Walkdr 14V 88 ^
Pnvarbanken 1'4V 88' E '

Quebac 15V 87 E.

Rned (NdJ.NV'16V«9 E
Royal TrosteD 1* B6 f —
SDRi Franco 15V 92 C... -
Swed Ex; Cr..13V 86 E
Eurpfime 10V 87 LjJxFr
EIB 9V 88 Lind;?

20
. 20

'IB --

20 'I

■15' •

so

2B '
12
35

.25.
12 .

W;

20v.

500

600:

B 8 V -OV-tOV 10.47

. »:• .to'. «QV-16to ■
si^ -azv • 0 - -^vn.ei
96 S7 ,0- MIV15J7
89 V- SO^+OV
-03V B4V :W**+*V’H.10
■95V 96V 0^

4WV 97V

B 2 ?i; 93 V.C.'

or. toV-rOV +OVTVTS

94V tov -fi +.to>1S*T
101V 102V T-0V-.0V. 14.78
,10«V 105V +OV i t : «

98 •

100V iqi : .-foji
97V «fV ?0V-WTf28
85V 98V vO >-0Vtrt^
aiv m -ov ^-aViii97

Spread Bid Dffee CJftB

OV 9BV 9BV 15/10. 1599

FLOATING RATE
NOTES

Allied 'Irish 5V 92-'.'

Bank al Montreal 5V 91 OV
Bk. pi Tokyo 5*, 91 fDj OV
Bk.. Nova Scotia 5V S3" OV

BFCE 5V 88 OV

BFC£ SV 87 OV

Caisae Nac. -Tala. 5V 90 OV
CCCE 5>* 200^ OV
Co-Ban Eurofin 5V 91... OV
Cr.odii Agricole' B 3 * 07... OV'

Credit Lyonriara-SV 97... OV
Credit Nat. '5V 94 'U WV

Denmark. Kngdm of 92 OV T99 ' 9SF* 2S/B ; WM
pen N.orake Crad. BV S3 OV 98. , 98V 4/12'l5y«i vl

■ lnd . Bank Japan SV SB’ OV 99V S»V'12/f7 ~

Ireland % 89/94 OV Wi 99 . 25/« -JW

Kan S3 liis Oaake 5V 92 OV ; 99V: 99V 6/il Tllito,'

Uoyds ^Eurofin 5 1 * 93 .. SOV * ' J

Long Term Crad. 5V 92 OV
J P. Morgan 5V 97.. : ..-.. §0V
-Nm. West. Bn. SV 91‘... 50V

New Zealand 5V 1/7: OV

OV
DV
OV

V 99V »/W -15V-V SL2fi
88>r «9V B/lfr lttt^ .’flJto
99V 89V 29/TO IBVv^to

99V toY28/0 IS • to.08
say “V 27/r- > iev< j.nfc33

99*, 21/TO.16V '/ 15JB3
89V 99 11/6 ,l4hZil6.00
99 : 99V14/*'l6 r .i.-2W.12-
99V 99V 24/9 lS^4.^6^3
99V 99V 1/10 to -yr.:

9HV 96^, 9/S 1AOT

Nippon- Credit 5V 90
Offshore . Mining 5V 91

PKbankan 5 SI

Scotland in* 5V82.._ : 1.

Sec. Pacific 5V 91

Sociste Generate 5V 95
Standard Chan. 5V 91
Sumitomo Fin. 5V 88...

Sweden 5V 89

Toronto Dornin'n 5V 92

99V »V WTO T7V’^ : IM3
38V 98V 29rt1'.ttV^W8S
98V; -99V 12/8. jt)U7
99V- 89V 15/7 . If.W ‘ilSto
99V 99V 7/10 153S'3S«2
»9V toVTO/8 .'llfcOff 76,16 .
W- •. 99V 2/U ,14:1 «lT4jM
to - 99V 77/6 -.14
OV : j9BV ' 9»V2Sif»

0>a 89>i 100 . 24/T1 T5 ‘-F W.O* . .

ov -99V 99V i/Vt-B^T-IB/n •

OV -96V 9»VW/111<V ".15; ( » .
OV . 99V . MV 9/8,1* MtOB

99V 28/8
M 9SV11/8 T6V:“T8-50

Average price changes... On.dey Oonweekt'

CONVERTIBLE Cnv. Cnr.'

BONDS date price

Ajinomoto SV 9S 7/61 933

Bow Valley Inv. B 95 ... 4/81 23:12-
Bridgeatone Tire^V 96 3/82 470

Canon 6V 95 1/81 829

Daiwa Secs! 5», 96 ..-..12/81 513.3
Fuiftsu Fanuc 4V 86... ..,10/81 564T
Furukawa Elee. SV 96.- 7/8T 300
Hanson O/S Fin. 9V 3^.8/BI 1.38

Hitachi Cable 5V 96 2/82 51S

Hitachi Crad. Cpn,^ 96 7/81 .1812

Honda Motor 5b 97. 3/8 1 ,841

Inchcape 8 95 2/81 4to

Kawasaki 5V 36 9/81 229

Marur 6 96....:; ;.-7/B1 846.*

Minolta Camera. 5 96. ,. 10/81 828 A-

Mmoreo SV 97 5/5BZ 8.76

Murats 5V 96 7/81 2168

NKK 6»i 36 .... - .... ' :.... 7/81 188.
Nippon Chami-C 5 9i:..W/81 919
Niddoh Oectnc 5V 97... 2/a- 846
Orient Finance 5V 97 .... 3/82 1206
Sanyo Eieetnc 5 to..'.;. 110/81 • 6Kfc'
Sumitnnro flee S 1 * 97... 3/82677-3
Sumitomo Mat. 5V 96 ..10/81 295 1
Swl«s Bk. Cnn. BV SO... 9/80 .191
Konish.roku 8 90 DM ... 2/82
Mitsubishi Hi S 89 DM 2/82

Bd.Cfffdr. dajf - Wen .
81V 93V-2F* i4»
99 . WOV -OV 64.«
81V 83 -OV-2 to
85V87V-2V 5.79

164 88 JO 2.87

•TSV^BIV 3V- -3^
87b \ 89 — 2V -5to
+33. 94; —3- rr780

90V «V“3V -2-2

74 - 76; —CM. . 4JS
79V 80V - OV O.W
t58V 80 0 1 1939

to BOV 'rOV 4.17
to «0i— 1. - 2-00
S9V BOV 1 V 2J.29
185 869^-1 V: 35.0S

flBV 67V -1V 13.82
'. ,67. VBW* -4 - “26-78
61V 63b —IV. ITto
«PiWV“2 1 r 2JTI
91V ftSV rlV -M9
65V ,67V — 2V W.14
.89V er .—IV" 3- w
■ «2V 64V — OV *.79
73 7EV-0V 19!*1
565 'IOOV 101V -OV 5.88
203 WV S2V + IV 23-15

• No information available— previoDB-day's pries.'
t Only one market maker a uoplied' a; price. •
straight Boride: The yield ia the yield to redemption.. of the
mid-price: the amount issued. ia ao millions of eurtency
units except for- : Van 'bortda where li »a in billions.
Chanoa on week ■« Change-over- price 1 Waakiaediar.
Floating Rate Notes-. Oenominatad In doliars unless other-
wise indicated. Coupon shown is minimum-
. "ext coupon. becomes effective. Spread- Margin shove
six-month offered- rata 14 three-month; jr.sbava ' me»w
rate) for U S. dollars. C.cpn— Tha .cinrent . coupon.

■ C yid— The currant yield. ., •

Convertible Bander Denominated^ In doNers tuimii' other*
wise indicated. Chg. •day— Changd on tfayl. Cnv. data 1 "
First date for conversion into' ahem.'. \ Cny. prfc*“
Nommar amount of ■ bond . per. ahare ekptessad in
currency el share at convention jaw fixed at raans-
Prem — Porceriuge premium of the current affenthnt P^c*
of acquiring- shartw via the bond' over the mtavtewnf

prose of the shares.- ;• =.^7^5.-.-.. •

— ^ - '

O The Financial Times Ltd,'. 1992. Rat»rodl«ik>n. ht -whole
or in part |h .any Form ' not 'permrrted without vwhta*
eonaent -Data aupplied by DAYASTREAM Ut iinhatl atoL

: UnHto ‘ . mo* Jtorro'pan

banks, it was able to mate a av f^P-Sffi£ com -

.SiS iD 258 iw «■*> r"

charges to easterners in the ,_ • „ iFB

period.^ Many hanks had to re- Christiania is to acquire the

■&!*££ to 'comply with

centra] hank- ceilings — 143 per ?5

cent on short-term and 12. per ® J?

rn n a . _ .I.?, it ... I. • n TtJ f i__. f , , -i, per cent st sR C . After the t^K6"
rent oa medltqtt- ma.loDg-tenn coordinate the

. company’s activities with those

,' Operating profit, after depre- of Heimdal, another insurance
ciatjoir but before, provision for company -.already wholly-owned.
bad debts, reached NKr 80.2m . Both companies deal maiply
|$13jja) in. the four months,- with. credit insurance.

BCI is to pay about $35 -per
Share for' toe entire, common
stork of LitfOl Thft BaMflP hack,
under the; -’agreement outlined
last year, fa aSso toie to inject
some $20d o£ new capital •

. Tfee Ii& concern has 100: per
cent conhol of: Long island
Trust Company; -a -banjarg en-
terprise with total assets- of
about $lte ait the end of 1981.
ft -has 48faranrties In New Yortc
State- • ' ... :•

THE NIPPON CREDIT BANK (CURACAO) FINANCE MV.
. . - 05^000,000

' Gmran te cd Boating Rate Notes dne 1988

OfMchKutudfaqxmsmptftheimM of gross domestic product

SnM^-^CilQes^ n;^82

Conpaii** ud Market*

INTERNATIONAL COMPANIES and FINANCE

BT TERRY DOOSWOK1H M MMS

SERVICE

THOMSON - BRANDT; ' the
French' •' electronics "Company,
plans to ate around 400 jobs in
its lbss^nteang medical products
division, which-- - . how . - been
seriously affected by the world
decline in hospital spending. .

. The decision follows a month
after Thomson, one of the cote
p antes recently nationalised by"
the - ' Government, - an nonn oed
consolidated -losses -of around,
FFr 180m ($28w5m) for 198L !
Problems in its colour television .
tubes dfcvisioa and public tele-
phone interests were blamed. for;
the huBi of tola defied but it is,
known that the med ic al products

activities are also in trouble,.

The medical products divi-
sion, a specialist in the manufac-
ture of . scanners,' is run. by
.Compaghie Geaerafle de -Radio-
logfe (CGRK It has a total, staff
of arpond 4^200, of whom 3,450
are employed in EYance. Con-
solidated . turnover last - year
totalled EPr3.2toa ($50&n)-
against' FFr43.6btt for. . foe
Thomson group as a whole.* 1

Thomson, said last night that
many of the employees -who are
losing their . Jobs -through the .
reorganisatkm sJKrald be found,
new employment in the group
efisewhere. lt was hoped that the

shammin g- iteration would h n-
jwpye the results of the com-
pany, while releasing resources
for Investment In research nn ^
development

• ■ In another announcement
yesterday, Thomson denied that
it fe to take licences £rom JVC
of Japan to manufacture video
; tape recorders in Prance. The
company said It had no snob
plans “ for the moment.’*

’• HoneyweH has now ^e t h^
the .. . agreement which will
. redu ce Honeywell Information
i Systems interest in CH-Honey-
weQ Bull to 19.3 per ce n t from
47 per cent

German bank improves earnings

*y stewa*t tvamtG x hbankrjrt

THE TRADE ration-owned Bonk
ffir Gmmnwiftsdbaft hatf atib-
starrtiaiiy impro v ed operating
earnings tn fob first haft of 1982
after drawing. tm • hidden'
reserves m 1981. to avoid declar-
ing a loss.

The. b pok did not pay a divi-
dend last year, and cannot say
yet whether payments wffll be
resumed in 198%- Last pear it:
declared a balanced reerft—
neither pr o fit' <or loss-after
taking into its - a ocouats extra-
tmlinaoy earningB Of DM32Stm
(31365m).

BfG had conceded ends ear tint
it had affiled .to judge interest
rates correctly at the b e g inning
of last year, and thus suffered
heavy losses fnoiin the mfamateh-
tag of loans:' Decisions to.sefl
nfisumtjcbed.assete at a loss also
bit profits.

Interest eaffimogs last year feO
from DM. 622m to DM 404m; ae.
a'result of -these probienfc/wifo
the most serious profit problems
emerging in the second hate? of
the year.

The disposal' of masmedKbed

■assets^ ted their replacement
; with profitable lending in s
. period of faffing interest rates
-has . considerably improved the
' faonkV performance. .' Par the
.first six; months, interest earn-
.in®5 are. expected to come -out
at DM 350m, and for the year
oooBd be at least double tint
.- “The. impact, of -this improve-'
matt ear declared profits rtetetas
uncertain, however. ; The bask
is heavily committed to Poland
and other East - bloc ■ lending
and is expected to make farther
safastentneft provisions.

Fed approves
takeover of
Liico byi-BCI

By Rupert Cornwall m Rome ■

BANGA Comtetedale Staliana
one of the three big
commercial. banks owned by
mi. has secured approval from,
the U.S. Fedend Reserve Board
to acquire Xitco 1 Bancoip. of New
York in a deal worth $9%xi.' /

BCI is to
share
stork
under
last
some
. The

Christiania moves ahead
in first four months

BYiwr cjEsnel tiosLo .

CHRISTIANIA BANK ode of
Norway’s three leading com mer-
cial banks, achieved higher
profits m the- first four months
of 1982, bat said' profitability
wes still too low.

Unllte ;

corresponding to 0.9 per rent of
average capital employed. This
compared ' to NKr 54.7m and
0.73 per rent in the same period
last year.

ffot- infumst panmtngg

per cent of
employed, cam-
per cent * year

to acquire the
in Norsk
com-
a 38
take-
the
those

Heavy loss
forJFrench
chemicals
group

‘ By Om Pari* Staff

CdF CHIIHfE, one of tie
three' big chemicals groups
around which the French.
Gov e r nme nt is • planning to
reorganise „ £he . - Industry,
yesterday tenonneed a sharp
rise in consolidated losses to
FFr 15bn ($I90^m) for last
year. ■ -v*'-
.The deficit, more than
double the FFr 546m loss of
1980, further underlines the
-crisis white hit fte French
chemical? industry last year.
Rhon e-Poulenc, the leading
company in ' this sector also
lost FFr. 335m. test year, and
Pechiney Qginc Kuhhnana’s
chemicals . subsidiary, now
being taken over by Elf-
Aqaitalne, was *fao in deficit
- CdF GhlmJo, k subsidiary of
the nationalised Cfaarbon-
nages de France - coal-, com-
pany, ' blamed pact -of its
problems last year on the.
slack market Turnover rose
by only 8 per cent -about 6
per. cent less than toe rate of
inflation, to FFr lLBbu.

At the same time, however,
toe: company said- it* -was fait:
fay high interest paymmris. It
claimed that these were-partiy.
caused .by -toe imbaitece - in
ft&finamtel^tftetefe^dmiviiig
■from the 1 Government’s
failure in the past to inject
sufficient-new capttaL .

.The biggest proportion of
ef last year’s deficit was bon-
trfbuted fay the petro-
chemicals and plasties divi-
sions. Their losses amounted
to about, twateirds " of toe
total, toe ' ; company said,
mainly because they were
naable to : recuperate the
faster ' cost of raw materials
in higher prices.

.- The fertiliser division ran
.into aimOar • difficulties,
essentially ' because * of
increases in -natural gas
prices. .- •

Economy measures intro-
duced last year led to cots
of about L190 froem the 13,000
. workforce, /along with toe
closure of several factories,
particularly In polyethylene,
phosphoric add and fertiliser
production:.

* The co m p any added : that
it had submitted a plan to
toe Government for restoring
its profitability, a situation
' which was briefly reached in
1979 after two years of losses.
But its return to financial
stability would ' depend on
capital injections from the
State.

At home, we have anetworkef
40 branches offering services .

ranging from trade -
finance to debt

ENTERHUSMG

BANK

AflertKrtyce*rfnnes i e3p«OTX5 ) ' t

~ V(fe dominate theletteas rferetot

and goarantee field. And, this year; .-

we fagy e aramg ed syndicated loans-- .

_ ' an d gnarari itffftferiKfies worth

' 05$9QQTni3Bao to domestic custom sns

and mul tiBatomd cogpomtions doing .

b usmess inKuwaife rngorcoDstinclKii
and devekqjmentprogranimes. :•

• 6atbeworidscene,l©Ksenms

■ its teents through more tban700
" cane^Ksndent banks in over 100

counfxies,aswenasthrou^reyrcseiit-

ative offices in London and Sin ga p ore. .
’Wfe are wherever yon need ns. i
-/ Vfe are also a growing fiirceixi

■ international syiK&aled leading.
Durinfl-toielastyeM NBKlas atfedas
a jp*ri arutnag m; managec eg co- manager

ink^iotallmg^piQxiiiiatdy ■ j

TUS$ibiIlian.- _ . ■ ■ • i:'

> fftradei the countryS^htoe^

fe largest rammer-

daihanfeits e^erfisefetofifiiHnBri. - r / finaa^ heart If youare^erestedm

Richinoflasftis, Kuw^tnOTe-
torfess imports 80% irfitsgrroS . .

domestic product Tiade on a&ige sc^Ie
iSygide^vMtotteoatl^ .- -.; t :

And at toe heart efttoadivity is : ;

Th^TJf pinrMil Rgrik ofRuwait

Since 1^2, toe Baoklas been ]

- TbeNaticKa] Bank oTKawait SAX.
Bead Oflk*: Abdullah Al Sakm Sttert,

PO.Bax95, Safar, Kuwail.

TSepbCGK 4220U QDhacs)

.Idee NA2CXED 224S1 KT

NAXBANKJZ3623KT
CredStDivisjon -Mo}&siional
Tetepho txr. 451088A4073I«3834P-50
Tetoc NBKMUtir 4483&KT
Investment jEMeidant B a nkin g Dragon
Telephone: 463752/43&340-5G

TetecNATBANK 44653 KT

"SBKSepreseataHveOBice

fin - the United Kingdom md Europe,

NBK Overseas (Londoa) Limited,

IStMihaeSAfleyOHrMI,
LoahuBClViBC MM i
TeJephoae: 01-623 1881
TOex: 8923WNmU»rG
TheNatjcml ButcOtinsiSAK,

Representative Office for Singspcffe,
Smfe &gAuaandAnstiafasw,

H-Ol The Octagon, CecflSoeet,

SwapofeOlOd.
laepbone 2?25348«225349
TdeKKUBAfOLRS20538

IheNatkmal Bankof

Kuwait SAK.

James Buxton reports on changes in Italian telecommunications

Italtel on the road to recovery

FEW COMPANIES fbHow up

the announcement of toe largest .
loss in their history by placing-
full page advertisements "In toe.
Press. Yet that zs exactly what
Italtel, the Italian state-owned
tel eco mmucicaltapg equipment
maker, has beeu. doing in toe
past few weeks.

The advertisements do not
actually say that Italtel Iast y^r
lost L268bn ($200. 9m) on sales,
of L704bnL They taBc of barge
losses but concentrate mainly
on ambitious recovery plans
which are intended to bring
bate toe Milan-based concern
to break even by 1984. Italtel is
under determined new znange-
meat, and wants to show pit;

■ ItaHsel’s heyday and ’ toe :
makings of its dowztoXl came
in the 1970s when it set about
.the task of supplying telephones
and telephone exchanges . for

Italy's somewhat belated
programme of universal
subscriber trank dialling.

. To meet toe demands of the
political slogan "a tetephone-
for eveiyone,” Italtel more, than
trebled its workforce' from 8,000
in 1968 to 30.000 in 1979, making
up in manpower what it lacked
in efficiency.. The • response : to
hite levels of afaseoteetem to

toe poorty-romaged. and
terrorist-ridden factories was to
hire more bodies. ' - _ *

Tbe expansion in production, .
however, was maufiy confined
to traditional, labpW int^nrave
electro-mfedianicai technology.
Research and development of
electronic tetenplogy fid not
get forgottetk' however. But ft
was. a wild, . uncoordinated
expamion wtodi saw research
staff rise from .almost zero to
2,000 to a few yens. .

Trouble began in 1974 when
toe SIP: toe state-owned tele-
phone utility, suddenly .cut #s
brdete. This was partly because .
of toe economic slowdown af ter
fte first ofl crisis, and partly
becawe tfae'Goverhment refused
to let It raise Its tariffs in line
with inflation. SIP invested less

and less in real
.-/[talers real
30 per cent
1980.

“ft was a kind of machine
that was just going temper .and
stower, w ; says Sra . Marisa
BeUosario. the 45-year-old
woman., .who ; .took : over as
ma naging director last year
after -a career wa to OtiveJiti, -toe
eleetionics- company.

- Sledding labour in large
private sector Italimi companies
Is difficult, but in toe state
■sector— ItaJ el is part.-of toe IRI
state holding — it is virtually
taboo.

However, after intenmdnahle
negotiations . the -nntons,
tfae- toa^i. but gradous Sra
BeftSsario last year signed an
agreement which has allowed
ttaffltel to 'freeze recnertmg. The
agreement also means rt can
make use of labour turnover,
early retirement and other de-
vices to out the labour force to
about 25,000 hy the end of this .
year, halfway to toe .target- off
21,000 by 1985. Luge numbers
of workers have been put on
state-assisted lay-off, and last
year there Vas a jump of 46 per
cent to output per employee,

'Absenteeism is also said to
be dropping. It was 22 to 23 per
cent to 2979 and 15 per cent or
less today. Stocks, instead' of
representing ar.-. record 11
months revenue at- the ' end off
1980,' : were equivalent to seven
months at toe end of late year
—-the first fall to a decade, but
still too high for Sra Beliisario.

She has brought in a new
management and is improving
tfae structure of tile group,
whose weakness was respon-
sible .partly for the company’s
present troubles.

Soane L79bn of fast year’s
L268bn loss was because of
write-offs on a Brazilian sdb-
ridtorr where Sra-BeBisario put
an expensive end- to what she
caHs a “ crazy " situation.
Nevertheless debt servicing
teaiges rose 25 per cent to
Ll48bn against lllbn in 1980.
Italtel hopes to get losses down

Sra Harisa BeUisario, Italtel managing director

to about LlOObn this year.

But much of It ait el's recovery
depends on success to.. -meeting
Itriy’s demands for a ’ network
of electronic exchanges and in
exporting its new product.

Italtel has developed an
electronic switching device
called the Froteo, of which
about 60 different examples are
already to operation.

After lengthy consideration,
Italtel made a co-operation
agreement in > -April with
General ' Telephone and
Electronics (GTE) of the U.SL,
under winch they wffl -share
technology to 'develop a new'
electronic exchange for toe
Italian market and for export
in areas outside toe American
standard zone. Fiat's successful
t^eoomKzraaicatidns' subsidiary,
Telettra, is also to be involved
in toe -projects, wbn$ will bear
the Proteo name. It shoj/d be
in production by the middle of
toe decade, so that by 1988, toe

SIP is not expected- to order
any more electromechanical
exchanges. . .,

Sra BeUisario chose GTE
against Ericsson, the Swedish
concern, which like GTE
already manufactures in Italy.

. She felt that though Ericsson -
offered technology at a more /
advanced level of development^
an ‘ agreement with GTE
offered greater long-term
export possibilities.

- Italtel hopes 1 to export 25
per cent of its turnover in
1990, when its new models will
be-in foU production.

Nevertheless’ critics of
Italtel have said- that she has
made the more risky choice

But Sra BeUisario does pot -
seem daunted: “ This may look
ambitious but we have analysed
it. CIT-AIcatel (of France)
started from scratch. This is
a good moment to go into toe
market These are not
excessive goals.”

The Granular Activated Carbon Divirion of

Kennecott Corporation

a wholly owned suhsicfiaiy of

(an Ohio CcBpatation)
has been acquired by

CECASA.

- - • •>* . - .

a subsidiary of

• *

Vfe initiated this transaction, served as financial adviser to
KermecottCoTjxm t ion, and assisted in the negotiations .

WARBURG BmSASBECKER

AjQBECKER

JwteWZ

' - v : 7 ttiiufs? RM*wi£woRiDvrac

Payment of the principal of, and interest on.
the Notes is unconditionally and irrevocably guaranteed by

THE NIPPON CREDIT BANK LTD.

(Kabushiid Kaisha Nippon Salken Sh'inyo Glnko)

' In accordance with the provisions of the Notes and - v the Reference ’
Agency- iAgrefeihetrt; between;' the’’ N mowT XI red w BAinlci; { Ghraoip)
Ftnante "N.V. an*f ChJbaW, N JC^daterf December 3, 1980, notice b
hereby given thaf^tfie; RjLte Interest; his; beeiTrfixed at 15$% pa

and that the interest payable jm ^e' : rolewtoit "'Interest Payment
Date, December. ^ 1782,^3 gainst Q»jpop No. 4 wiil.be US5796-53.

June 11. 1982 J - f : •* ' - 7 ^ '*

By: Citibank, NA, London, Agent Bank.

CJTlBANfO

Banco Central de Costa Rica

- . US $50,000,000
Floating Rate Notes 1985

Notice » hereby given '

- pureumrttothe^ Terms and Conditions of the Notes that

for the sbe months from.

- 11 th Jmw^ 1982 to tSftpecBmber, 1982
tbe Notes will carry an interest rate at 161 % per annum.
GnlSto Becomber.l^StntBrest oH 1S.B4W.32 wffl to
dte parU^ $5^)00 Note for Com»a No. 5L -

g nrop ea n Brnddag Compeny Umfted

(AgetoBanQ [

TtBi Amo, 1982

THE LONG-TERM
CREDIT BANK OF
JAPAN FINANCE N.V.

U.S. $50,000,000 Floating Rate
Notes 1979-1989

“ • • Forthesixmpnths

■ : 9th June, 1 982. to 9th December, 1 982
the Notes wiii cany an
. interest rate of 1 574% per annum.

With a coupon amount of U.S.$77.52.

Bankets Trust Company, London
-Agent Bank

riW'oNo^xiIdai

■ '1.

The International Co mm ercial Bank of, China

l ' - ....

U& $20*000,000 Floating Rate Notes Due 1983'

Pursuant to clause 6(b) of die Listing Agreement, -
die Annual Report arid Accounts for die year ended
December 3 1st 1981 of the International Commerdal
. , Bank ot Chipa are.avaikble at die office ofCazenove
and Co^ 12 Tokenhouse Yard, London EC2R 7AN.

BANKERS TRLOT COMPANY, LONDON
.... aii JA&*

DATED: 11 JUNE 1982

30

■ - \

NEW ISSUE .

•*'-Am»-l&1982

U.S. $65,000,000

Geoegia-Paofic Finasce SLV

14%% notes Due April 15, 1987
WITH ^^KRAOTSTOPDHGHASE
US. $130,000,000 15% NOTES Due ABRIL 15, 1990

The 1937 and 1990 Notes ake ^U ytx^mmtALEr yer

Georgia-Pacific Corporation

Blyth Eastman PaineWefcLer

Banqnede Paris et des Pays-Bas

County Bank V

Umiiad

Credit Snisse Hirst Boston

■ . XusiteA .

% . . ’ ‘ ■ ■

i» I_,

Deutsche Bank '

j munwlliciu»ft . ■ *■:

Hill Samuel & Co.

limited

Morgan Guaranty Ltd

Ktnmfc Foreign Tradihg Contracting
&lnv^toent Co. (SJLK.)

• r >.'■ ■ . Societe Generale;

Soriete Generale de BanqueSA.

Swiss Bank Corporation lnternational

T.hUHwl -

: Union Bank of Switzerland (Securities) ’ "

TjmiW

S^G. Waffrarg; & Co. Ltd.

fZTMmvkYA

iiniixiiuc

•i«r«

•JiliTa

First Mortgage Bonds, Series % 15.10% due 1992

fodder, Peabody &.Go.

lUBli«W

BacheHakey Stuart Shields :

Incorporated

Donaldson, Lufkin & Jenrette

8 nc a rttl«» Corpmsttoii

E.F. Hutton & Company Inc.

Die First Boston Carporadon

Drexel Burnham Lambert

IwxnRpowML •

Blyth Eastman Paine Webber

* ' * ' l aa g j wated

Goldman, Sacha & Co.

Merrill Lynch White Weld Capital Markets Group

Mwgrilf Xgnti^iEUft^ateMr* Smith Xocorpoeited

Salomon Brothers 3hc Sheaison/ American Expf ras Inc.

Lehman Brothers Kuhn Loeb

i M W WW M

L. F. Rothschild, Unterberg, To whin

Warburg Paribas Becker Wer&eim &Co„Inc.

Ales. Brown & Sons . A. G. Edwards & Sons, Inc.

Moseley, HaUgarten, Estahrook & Weeden Inc. ■

Smith Barney* Harris Upham & Co.

. iBrarponted

Dean Witter Reynolds Inc.

Ales. Brown & Sons

McDonald & Company
Thomson McKinnon Securities Inc.

J. C. Bradford &Co. Howard, We3, Labputsse, Friedrichs The Rbhinson-Hnmphrey Company, Inc.
Wheat, Fust Securities, Inc. Dorsey & Company First Equity Corporation

Freeman Securities Company, Inc. Konnendi, Byrd Brothers, Lie. Burton J. Tincent, Ghesley & Co.

U.S. $50,000,000

European Asian Capital B.V.

(Incorporated with limited liability in the Netherlands)

Guaranteed Floating Bate Notes
Due 1989

Guaranteed by

European Asian Bank

In ■ccerdanc« with the provisions of the Notes,- notice is
hereby given th*r for the Interest "Period from-. 11th -June,
1982 to 1 3th_ December, 1982 the Notes will carry an Interne
Rate «»f 15*% per annum. The relevant- interest Payment Date
will be 13th December. 1982 and the Coupon (No. 3} Amount
per US55JMO will be USS398.26. ...

LynchlnternationalBanklimited

Agent Bank

Credit & Co m wei xe InsuraiKo

MOVEtOTK
emriff LONDON

Due ftp a marked inoreasein _ ;
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intotheBfoker andintemational ■
Markets, Credit& Commerce. ■
Insurance are mdvingjnto hew
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BETTER FOR YOU* . .BETTER FORUS

js Greott ant* Gom merce Insurance

rf. ooWWffltTOUMrrfift .

U . . CGI House, HeneageLane, London EG3A5DQ
^ Phone 01-2832411 TetexS89320. :■ ' ,

-• • ' : Financiall:Times-

ST&INTL: COMPANIES- & J

BY JIM JONES IN JOHANNESBURG

■SOUTH AFRICA'S 'Competition'
Board has .completed its investi-
gation Into the ; country’s wine
industry and has recommended
that many of the arrangements
forming part of the, rationalisa-
tion of -the liquor industry at
the end of 1979 be . reversed.

.The board’s recommendations
are. being considered : by Mr
Dawie de ViHaers, the -Indus-
tries''-. Minister. To take effect
they would need to be voted on
by Parliament.

In r 1979, the Covernment
sanctioned the division of the
South African liquor industry
along product Uqes. South'
African Breweries- (SAB),
acquired Intercontinental

'Breweries (1CB) from the Rem-
brandt Group, and became the
country’s ' -sole brewer.

'-■SAB Wipe interests, ' held
through' Stellenbosch - Farmers
Winery (SFW). and Rem-
brandt’s wine interests, held
through Oude ' Meester, were
merged to form Cape Wine and
Distillers. *

Cape shares were "split — 30
per cent went to SAB, 10 per
cent* 'were sold to' the public,
30 per cent were given .to Rem-
brandt and 30 per cent went to
the Koope rati ewe Wijnbouers

Vereemgang (KW.V>, which
represents the country's 6,000
wine growers." These last two
shares were later merged under
one corporate umbrella, malting
op a 60 per cent holding in Cape
Wine. . The company enjoys a
near monopoly of the produc-.
tion - and bulk' distribution ' of
mne.

A further pan' of the 1979
arrangement was that the pro-
duction and retail sides of the'
liquor industry . were to be,
separated. limits were placed
on the number of retail liquor
outlets one person .or company
was allowed to own and SAB
and Rembrandt -were given 12
years to dispose of their retail
liquor chains.

The Competition Boards’ re-
port, which was presented to .
Parliament, this 1 week, is highly
critical- of the 1979, arrange-
ments, saying they limited com-
petition and therefore, could
not be in the public interest.
The report adds that SAB's 30
per cent holding in Cape Wine
is not in the public interest and -
that KWV should sell its in-
terest . in v Cape Wine. In
addition, ; it. recommends that
steps be taken to end Cape
Wine’s ' shared control of SFW

and Oude Meester. '

However, the board’s recom-
mendations falls short of un-
doing the acquisition, of; ICB by>
SAB. The former,, whose results
were never made public,-’ failed .
to break SAB’s pre$ambiamt :
position its the beer snaricet' and
it was though j' to have operated
at a substantial loss. .7;';

Hie board’s investigation look
into account- the difficulties ,l
faced by 1 other brewers wishing;
to challenge SAB’s position. -
In another r reconun eh dation,
the board proposes thaJtvfSAB
should' sell, its remaining /retail,
liquor, outlets within' five. years

and -that the .granting of . liquor .
licences -be subject • ? to less;

restrictions. This would, allow.
grocers to trade in spirits and
beer as : well as wine. ...

SAB .and -Cape Wine -are
examining 1 the proposals. and :
have, made no statement yet -on -
their' positions. However, the
KWV ii ■ strongly .opposed -to
the extension .. of grocers'
licences.-' • The 1 country’s vocal '
and poetically important wine
growers aye expected to protest,
against any moves that: would
weaken, their trathag, position,
against topse of makers of other :
alcoholic beverages. .

Slower growth for Edgars

EY OUR JOHANNESBURG CORRESPONDS^

EDGARS, the 42(^5tore South
African chain of rio&ing shops,
earned . a profit of R46.5m
(550.9m) before tax .and in-
terest in the 39 weeks ended
April 10,.- 1982. Turnover was
RSOlJBm. In the 53 Weeks ended
June 11, 1981, turnover,- .was
R3£3.4m and profit » before in-
terest and tax R52.4m.

Edgars’ financial year end has
been . changed -to fit in with
that of South African Breweries
which, in February this year,

acquired a 60 per cent interest
in Edcon which, in turn, holds
50 per cent of Edgars' equity.

The chain's earnings growth
has - slowed in line with poorer
consumer . spending .since the r
start of this year, while interest
payments were affected by a
higher level of debt and higher
interest rates. In the 39 weeks
just ended, Edgars' interest bill
was.R9.3m against R5.6m in the
preceding 53 weeks. •

Borrowings, according to -

Malaysian merchant bank
boosts earnings by 70%

■ BY WONG SUUQNG IN KUALA LUMPUR

MALAYSIAN International
Merchant Bankers lifted pre-tax
earnings by- 70 per cent to
7.7m ringfdt (US$3 .4m) in 19&1
and after-tax profits by 70 per
cent to 3.9m ringgit. . .

Gross operating revenue rose
by 60 per cent to 2£2m ringgit
with a significant portion
coming from fee-based activi-
ties. 'Hte dividend is an un-
changed 12.5 cents a share. ■ .

Assets increased by 25 per
cent to 350m 4 ringgit and
customers’ deposits by 6 per
cent to 163m ringgit. The bank
is fourth among Malaysia’s 12
merchant banks in terms of

deposits- and assets, and third
in terms of shareholders’ funds.
• A team of the San Francisco-
based Fireman's Fund Insur-
ance is in Malaysia for talks
with Sime Darby on setting up
joint ventures to go Into the
insurance business on a largo
scale in Malaysia and the Asean :
countries.

Mr Adrian Bellamy, the . execu-
tive chairman, were pushed up 1
hy the need to finance' the acqui-'^ :
sition of the 34-store Aekennans
chain It is planned to sellisome i.
of the' Ackermans . properties to'-
release funds to reduce debt..:
In the four months in wMdi .
Ackermans was consolidated
with Edgars, December to April,
it recorded a small after-tax.
loss,, though this was. an im-
provement , on its performance -
under previous management .

TSils . year the directors ex-
pect only modhrate ' earnings
-growth and they say that Tt--is‘. .
intended to increase dividend r
coyer slowly over the next few
years. A total dividend 'of 440-
cents has been paid from'.eam- <
ings of 1,139 cents a share in
the 39 week financial .period.

In the previous 53 weeks, earn- ’
ings were 1,484 cents a. share
and a total. dividend. of 57Q
cents was declared.

US. $70

• At present the Fireman's
Fund, which is the.' tenth

Banco

- ..feiAuqaorfiwk

largest property-liability insurer
in the U.S„ has no presence in
South-East Asia, while planta-
tion-based Sime Darby. has some
of the best business contacts in
the region.

7 Floating Rate "*

Seiko in U.S. software venture

K. HATTORL, leader of the
Seiko group. .Japan's largest
watch; manufacturer, and
Seikosha. a timepiece aqd small-,
computer manufacturer in' the
group, have announced an
agreement with ■Science Man-
agement Corporation - ( SMC), a
UJS. computer 1 ; software com-
pany. fa set up a joint enter-
prise .iii New Jersey nhortiy,
Kyodo reports from Tokyo.

The joint company, to be

named SMC 'Seicosm,. will have a
paid-up capital of $50.12m, of
which 64 per cent will be put
up by SMC and the remainder
by Ha tori/ SeLk ostia and Toky o
Boeki.

The joint company wifl de^
vel^p jimall computers, suited to
U.S. -companies. The new com-
puter series thus developed
would be manufactured by
Seikosha in Japan, ..

notice s hereby . given that the rate of interest . I
has been fixed at-f.^ger cerrt land that the invest:'

l

APPLIED / • • H'/: -

COMPUTER ^ M

TECHNIQUES •

(HOLDINGS] p.Lc.

PRELIMINARY RESULTS-
year to 31st March 1382 —Financial Highlights

1982.; 1381

Turnover .

Group trading profit before taxafbn' - '
Group profit attributable to ondinary'shareholders
Ordinary Dividends
Group profit retained
'Earnings per Ordinary share

Me#;.: 7 Mi

IrOIT

785

72

713

6.01p

".756
501
50
,448
SJ07 p

ES35S5ST3?mj

720

372

m

9

il

mmmim

■ 31

: 11

CE

IK
: el 6 S

r.'V

'i'v^

y . -nt*. L

r-i. 91 ».
... t~ ;t

“•* ->rS.

/ Jjj:-... , C-:,

-r.\ {■. . ■

Financial Times Friday June 11 1982 .

Robert Cottrell reports on the controversy over promissory notes for land

BowV^hdo&tiesltt

3^7^-* w ‘-*nrh

A HK$10bn (£960m) headache •
confronts (he Bong Kong
Government, as it decides how
to mojTup a sea of expensive
promissory notes which it has
issued over the .past 20 years. .

The notes,' called “ Letters .
B," have been issued by . the
Government in. exchange : for
land which it' has acquired for .
residential . and ■' industrial
development in the once-agri-
cultural New Territories, com-
prising the bulk of' mainland -
Hong Kong, and the . scattered '
islands with the exception of
Hong Kong island itself.

Letters . B have a hybrid
function: _ Fran the Govern-
ment's point of view (hey are
debt Instruments. From the •
holder’s point of view, they are
property futures. As debt, they
have proved formidably expen-
sive, since -they are effectively
indexed to what has been a
soaring property market.

And looked on as property
futures, they depend on the'
property being there against
which they may be redeemed.
At the moment, it is noL' -

Hence the headache. And a
working party under Mr John
Todd, the Government's direc-
tor of lands, is now looking into
solutions.

The primary outcome is likely
to be an end to the issuing of
new Letters B in a few months'
tim e. As to mopping up the
HK$10bn-worfh. of outstanding
notes there are, as yet, no dear
indications of how it might be
done, other than that a buyout
is too expensive to be at all
attractive to the Government.

The Hong Kong Government
is the freeholder of Hong Kong
island and the southern tip of
(he Kowloon peninsula. The
New Territories are held on a
lease from China which expires
in 1997. The Government leases
and sufb-leases its land to -the
private sector, and derives sub-

HoVccfo Holdmof

GENERAL ELECTRIC CREDIT
INTERNATIONAL N.Y.

Zsr« Cnpm Gmrateei Halts Due 1382
Zero Coupon Guaranteed Notes Due 1993
Z wo Cat/pa Guaranteed Notes Dm 1994

and

Zen CeupaR Guaranteed Notes Due 1995

Oman! Etacbfe Credit httomanenai N V. nnter-
mofenon hareby ohm wmIm nut tna ofltoa of
Tha Chn UDibatum Bank (MaHonal Association),
■a FteeaJ and Paying A<j4n1 ter aoeft of ttw abnt-
eaptloned tonics of Notes feoHarfhoty tho “Notes'!,
at which Noted tn an ha p ma antad tor raBtnMHon
and wioatorln iagla)aii»r1 torn has baan changad Mi '

Tba Class Manhattan Bank
{Maffsnal Aaaodafloo)

CoreeraM Trust AdninMatlon

T Now York flora

Now York, Maw York iOoai.OBA.

Oanartf liaeU^CeadtlaiaoiaaiaalMiV. .

■lima IQ, 1882

stahtiai revenues from .doing
so. ' - .

The New Territories have,
been the focus , of residential
and.. Industrial development .
Over; the past -two decades,- ax.
Hong - Kong island and ' urban
Kowloon have reached satura-
tion density. To develop the
New Territories, the - Govern-
ment has compulsorily bought
oiit •smallholders, parcelled up
large tracts of land, provided
a . civil engineering infra-
structure, allocated land, for'
public sector needs jsndi as
bousing and schools, -and then,
-sold back the remaining devel-
opment land to the , private
sector.

; While cash compensation was -
offered to the holders of New
Territories land which -the
Government required for devel-
opment. it was felt that locri.
people should have a chance to
share in. the development and.
prosperity of their neighbour-
hood. To this end, in 1960,
Letters B were introduced.

For every 5 sq ft of agricul-
tural land surrendered, a Letter
B could be obtained entitling,
(he holder, in Jaeu of ca sh com-
pensation, to 2 sq_ ft of New
Territories development land, 1
when At should be made avail-
able. The scheme bad the addi-
tional feature of conserving
government money by defer-'
ring . payment. Where land .
already used for buildings was.
surrendered _ to the Govern-
ment, the Letters. B entitlement
ratio was a -straight one-to-one.

When land in Hong Kong is
put- to a more profitable usage,
for instance when agricultural
land is 'developed for. residen-
tial or industrial usage, ■, a
premium is payable to the
Government reflecting (bat
change of usage and contem-
porary property market condi-
tions.

So, when Letters B holders
exercise their right to
acquire new land, they are ex-
, changing their formerly unde-
veloped land for 'la ad zoned for.
more profitable usage, and a
premium is therefore payable.

But the special feature of
Letters B which turns them into
a property , future is that the
premium payable is not that
prevailing when the new land
is bought, but the premium pre-
vailing when the Letter B used
to acquire it was issued. If a
1964 Letter B had been used
. to buy land' in -1979. (he pre-
mium payable would have been
that prevailing in 1964, and not
in 1979. •

Where land is to be offered
to Letter. B holders,, it is done
SO on a competitive tendering
basis. Land on Hong Kong

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IN£A2EYO0NS3> A £P£2JAL12S> £A££0 £ARRR3£ y

TUBA& corner

'island and urban KcwioquUs
sold at cash auction. New Terri-
tories land may go to Letter B
tender or. cash auction at the
Government's discretion. .

; The official record, showing'
variations m New Territories
premia by year and by area is.
known as the “Chart W,” and
it provides a dramatic record
of how Hong Kong property
values have risen. In January
. 1960, for instance, (he premium
per square foot payable on in-
dustrial la nd i n Sai Kung dis-
trict was HKS17. In October
1981 it was HK$1,200. The dif-
ference between those figures
indicates the effective value of
a 1960 Letter B still held in
1981.

A second feature relating to
the exercise of Letters B is that
their purchasing power is
deemed to increase with age.
So if otherwise equal tenders
were now received for the same
package of land, one in' 1964
-Letter B, (he other in 1968
Letter B, the 1964 Letter B bid
would be successful.

This “ queuing system ” on a
first-out first-in basis reflects
the . origin ally-i once ived func-
tion of Letters B, to give some
priority to those from whom
.the land was acquired in regain-
ing a stake in it

But while the underlying con-
cept of Letters B has a folksy
charm shout it. the reality be-
came far different As property
values and hence premia rose.
Letters B became increasingly
valuable commodities which
soon found their way out .of
smallholders' pockets and into
the balance sheets of property -
companies.

Letters B now oustanding are

■ estimajfidi-f tb: represent some
40m ~sq ft of -resumed land, and
the secondary (market is rec-
koned to have resulted in three
properly . companies, two of
them publicly quoted, holding .
half of. that total Those out-
standing Letters B represent
some 40m'sq'ft of surrendered
land.

It is not surprising that there
should become overhang of uu-
exereised Letters B. There is no
time restriction on their use,
they may have - been bought
speculatively, to be exercised
according ; to market conditions.

-But that the overhang should
be so large reflects .-the
Government's thirst for. land
over recent years, ' particularly
. to accelerate its public housing
programme. ■As' -the proportion,
of land required, by the .public
sector £n any given, development
increased, sd* ihe proportion
available for allocation, to • the
private sector 'duninisihed. -The
Government was acquiring land
.with -Letters -B which, in- the
short term at least, it could'not
satisfy. .

.' In 1978. recognising that the
^system was getting out of hand,
the Government reduced the
allocation of Letters B to a- maxi-
mum of half -the land surren-
dered. ihe balance of compensa-
tion to be setfled in cash. The
implied ratio of hand'- acquired
to land released fell, then, -from
five-to-two, to flw-to-one. Still
the surplus rematned-r-SS ■' per
cent of now-outs Landing Letters
B date from 1978- and after.

Since 1978. another factor
has intervened,. Property values
oyer the .last year have been
failing. Industrial •' land In
Tsuen Wan stood at a Chart W

premium of HK$ WOT per sq ft
last • October- . This -April, ttxe
figure was HK$ 750. No privi-
lege there to pay a 1981
premium — though where cur-
rent premia are. lower than
Chart W premia, the lower price
prevails, so holders are left with
a worthless rather than a nega-
tive asset. „ .1- •

The system, in sho*£ no
longer works to anybody*? berie--
fit. Too many notes for too little
land which nobody wants to use
their more valuable Letters B
for anyway. But apart from a
cash buyout which fails into
the “least-likely " category,
how to w)nd it all up? .

The high cards are, in th'eoty'
in the Government’s hand. It
bas issued open-ended notes
which it could simply let drift
on into the mists of 199fc Bpt
not only would the Government
hear from the developers in
stiff terms if no fair exchange
seemed ha prospect, but it als^j
recognises its liability and. is
looking for a generally accept-
able solution.

One reasonable compromise
might be to offer all land, ulti-
mately to cash auction, but
allow holders, of Letters B to
pre-empt (he auction with, paper
tenders of their own. and allow-
ing a buffer period in which
developers cocrki adjust their
holdings of Letters B to the new
market snttiftttoifo

Perhaps, even!, ' converting
outstanding Letters' B into some
sort of fixed-term bond, issue?
It would .' have . the', . nririt of
formalising : ' -their "* status as
government debt and at the
same time defer repayment^
Perhaps,- too, a more ; predict-
able interest rate coupon could
be attached-, .. . • . , \

GuLMaiar

Bow;Valtey lndilStnes Ud. ^3 -
pleased to announce the ap-
pointment jot Mc CLL MaferaS ,

- President :and Chief Btebotiv®
Officer of the Company Me Maim*
has also been elected a Director
of Bow Valley Indugt fle aand jtts
~l&/o owned • sUbsidiars/Bow
Vafey Resource Services.

As former Chairman of the
Board and Chief Executive Offi-
cer of Hudson's Bay OH and Gaff' "
Cothp^ny limited, Mt Maler
brings to Bow Valley thirty years

of experience in the petroleum
and mineral Industry. Most of his
sfirrice was with the Hudsoris
Bay and Conoco or gani z a tions
where he gained experience In
many Jurisdictions, Including. the
United States,' Edrope, Africa* ■ ■
Southeast Asia and ArrittUb. 1 .: " -

MtMaiei; a native of Saskatch-
ewan and graduate of tha U river-
si ty of Alberta, is active hi com*
munlty organizations in Calgary
and Alberta.

Bow Valley Industries Ltd. is a
Canadian company actively In-
volved in worldwide exploration
and development. of oil gas and
coa&d'ri-wefi drifllng^dfamond
: irillinffsuid manufacturing.

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BRANCHES IN ALLNIGER1AN PORTS

Jk

1

base LENDING RATES

AJ3.N. Bank ............ 15J%

Allied Irish Bank 12J%

American Express Bk. .12

Amro Bank 12i%

Henry Ansbacher ...... 12$ %

Arbuthnot Latham 13 %
Associates Cap. Corp.13 %

Banco de Bilbao 124%

BCCI

Bank Hapoaiim BM ..; 13 %:

Bank of Ireland 124%

Bank Leumi <UK) pic 121%

Bank of Cyprus 12$%

Bank Street Sec. Ltd. 14 %

Bank of N.S.W 13 %

Basque Beige Ltd. ... 13 %
Basque du Rhone et de
la Tamise S-A. ...... 13 %

Barclays Bank ' 12? %

Beneficial Trust Ltd- ... 134%
Bremar Holdings Ltd. 13$%
BriL Bank of Mid- East 12$%

I Brown Shipley 13 %

Canada Perm’t Trust... 13$%
Castle Court Trust Ltd. 13 %
Cavendish G’ty Tst Ltd. 14 %

Cayzer Ltd.’ - 13 %

Cedar Holdings .......... %

I Charterhouse Japhet ... 3 2i%

Choulartons ' «'%.

Citibank Savings tl2i%

Clydesdale Bank 12$%

C. E- Cofltefr ” -

Comm Bk of Near East 13 %
Consolidated Credits... 13 %

Co-pperative Bank 12|% -

Corinthian Secs. 124%
The Cyprus Popular Bk. 124%
Duncan Lawria 124%

Eagil Trust 1^4%

E.T. Trust }S %

Exeter Trust Ltd. ...... 134%

First Nat. Fm. Corp.... 154%

First Nat* Secs. Ltd.... 154%

Robert Fraser 13 %

Grindlays Bank : 2124%

I Guinness Mahon 124%

I Hambros Bank 12$%

Heritable & Gen. Trust 124%

I Hill Samuel 512*%

C. Hoare de Co. tl2$%

Hongkong & Shanghai 12$%
Kingsnorth Trust Ltd. 14 %
Knowsiey & Co. Ltd.... 13 %

Lloyds Bank 124%

MaUinhaH Limited ... 124%
Edward Manson & Co. 14 %
Midland Bank 124%

■ Samuel Montagu .^....-12|%

■ Morgan Grenfell 124%

National Westminster 12$%
Norwich . General Trust 12$%
P. S. Refson & Co. ...... 13 %

Roxburgh e Guarantee 13 %

E. S. Schwab 13 %

Slaves burg's Bank 124%

Standard Chartered ...1)124%

Trade Dev. Bank 124%

Trustee Savings Bank 12|%

TCB.Ltd, 13 %

United Bank of Kuwait 12$%
Whiteaway Laldlaw ... 13 %

Williams. & Giyn’s 124%

Wintrust Secs. Ltd. ... 124%
Yorkshire Bank 124%

| Mnmiwrs of ih> Accapttng Houa*s
Camraitnp.

■ T-dny da posits *.5W, ' 1-monUi

S.75%'. Short t*rm £8,000/12
month 12.1*4,

*. 7-diy dopoaito on* aumt sfr vodar

£10.000 £10^)00 up to

£60,000 IMiV £50,000 «nd <w«r

H.%. . *.

Call dapoalts £1,000 and W#K
9 W. ■

21-day dapoalts ovar. £1,000 10*»W-
Daniand dapoalts. 9 1 a%« ...

Mortgaga Bapa rata.

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1 f ■ i

s i ^ fMl

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Financial Times, Friday 3rm^..llv;3Sffi‘

TAXES IN CHINA

Final dividends for the year ended 31st December 1981

Scrip Dividend Proposal

At the extraordinary and annual general meetings held on
28th Mot 1982, the scrip dividend proposal and the recommended
final dividends for the year ended 31st December 1981 were
approved.

Elections for cash dividends were received by the dosing
dates for the lodgment of election forms in London and Hong
Kong from the holders of 104,100,440 “A” shares and 614^258,246
“B” shares. Consequently, the following new shares have been
allotted to shareholders accepting scrip dividends : —

Number of Proportion of
new shares existing shares

issued in issue

6 A 9 shares
*B’ shares

4,290,444

5,618,144

2.1083%
0.7633% .

Certificates for the new "A” and “B” shares, together with
cash payments in respect of fractional entitlements, will be
despatched to shareholders on 11th June 1982 and dealings in the
new shares will commence on 14th June 1982.

Shareholders should note that, with effect from 7th June 1982,
the Company Registrar’s address will be:

Lowe Bingham Registrars Ltd
22 Lan Fong Road
.Ground Floor'

Causeway Bay
Hong Kong

Cables: Lowebinghams

Telex: HX73751

Mailing address:
Lowe Bingham
Registrars limited
G.P.O. Box 690
Hong Kong
Tel: 5-222111

Law clarified for foreign companies

By Stanley B. Lubman

By order of the Board

JOHN SWIRE & SONS (H.K.) LIMITED

Secretaries

Hong Kong
8th June 19S2

Swire Eiciffc limited

The Swire Grasp

SwseHoas^ Hong Kong*

CHINA’S T.TCA’nTTRKM 1 ft Jg .

continuing its remarkably

vigorous recent attempts to
establish a formal legal system.
A new tax law — intended to
reach most foreign economic
activity other than the equity
joint ventures already covered
by earlier legislation — was
promulgated late last year. It
has been quickly followed lor
interpretative regulations and
attempts by the Ministry of
Finance to clarify the new
provisions.

Although many problems re-
main to be resolved, Chinese
financial officials are trying to
be helpful and seem to be mov-
ing fairly quickly to answer
some of the questions that have
arisen.

The new law, the Foreign
Enterprises Tax Law, taxes the
income of “establishments” set
up- in China by foreign com-
panies at a progressive rate
beginning at 20 per cent and
rising to a maximum of 40 per
cent. Other foreign activities
which are not “ establishments ”
in China are subjected to a tax
of 20 per cent, to be withheld
from every gross payment of
“ dividends, interest, rents,
royalties and other sources ” in
China. An additional local tax
of 10 per cent cm assessed tax
is also provided for.

Consistent with previous
Chinese law-making practice,
promulgation of the new law

was fallowed by more detailed
regulations, which appeared
noticeably faster than regnte-
tions supplementing other new
laws that have been issued
recently. A Xinhua News
Agency press release at the

the progressive rate? The regu-
lations state that . these are
“ organisations, places or. busi-
ness . agents engaging in pro-
duction or business operations
which are established by
foreign enterprises in China. **
The number of representative
offices of foreign companies
registered in China has been
growing since a law requiring
registration of such offices
appealed in 1980. Neither the
law nor regulations give any
guidance on when a company’s
presence in China may be
deemed to be a taxable “estab-
lishment” if it sells through an
office in China or through an
agent, but is not engaged in.
manuf a ct u ring or assembly
operations or in projects related
to exploring for and extracting
minerals.

Moreover, it may be that
some sales to China will not be
taxable at alL Chinese officials
have indicated informally that
if foreign companies do not
habitually negotiate contracts
through local representatives,
but limit their responsibilities
to “liaison” and promotion,
then the proceeds of sales under
contracts negotiated by non-
resident representatives will not
be taxed either at the progres-
sive or the 20 per cent with-’
holding rate. Negotiations of
contracts by resident repre-
sentatives, on the other band,
will lead to taxation at the pro-
gressive rate.

Another problem Is presented
fay compensation trade trans-
actions, under which foreign
companies typically provide
equipment and technology to a
Chinese counterpart which

'- v ‘

'V . - -

. 4 ^’ *'\*<*»

V ' . *

•* . v* f * *

V.: y

Paris®. . ;;. jofert , v .product
enaaigemesfts, rootier fee
parties inay-fae-dWeiodo^iBa,
tract' ' utmost everything
-they could in cres^ag.Bn etpatv
joint venture, may- be reteifivelf ;
more, desfirafclle/ - TSin. msw l^r
- in - Otoax, helps . jtiaie possfHe
more subffie decisions' fean” ffie'
stabs in^e

.western companies fi^ve baifo
resort. -

*. ■ ' ■’ v--. •

- 'V

• v ’- * • . . * '* ^ s *
*'■ . . "*V* -* i '

*— ■

. More. tews are elpetjted soon,
too:- regutertSMis fanpSemeafcfogl
die skeletal few on jmnt vett, -
•tores stsraGd ^peasr 'fi&dr^y^ ^
' weH as a few oh Sweagn'trade
ctanbracts. ! The vacuoanin
■winch -fee China : trade: was :
diKAed - umta 1979 - Is ■Ssajipea^-

tfng. ■ Yet Cbfcn, .>]£& other
developing counties, w® have
to work bant' to make the ' h u g :
taws effective. ' ■ !■- v.

• : -

‘ - . •..vV. : 'V

Qlyn Gftin

Finance Minister Wang Bingqiam Us ministry's new
provisions have been quickly followed by interpretative
regulations

not be taxable, although they
Would be examined on a case-by-
case bask.

The new tew completes a
three-faceted approach to tax-
ation . of foreign economic
activity. Equity joint ventures

place, foreign companies are
now dearly apprised of one set
of ironsidieiratioins which " wHl
necessarily influence their
choice of strategies id Ghana.

Tax and other coosaderattons,
and their relationships, win he-

• Assuring- ratiform feteapapta- -
'tfions of , the hew tews aomfe-fee
comrtry by tanned -ead ■ compo.
tent personnel wall tstolfena.
'Tax offices hi Beijing,- Shanghai
and 'GucHigghoa give
answers to identical quesfeuB 7
about., the; tax on’laBviiJdaS
com'e of Jbralgners, firirlriaancfc,.
Siinflar.pfbblerBa; . arise hi -any.'
country. but r . they ' -may ■ be
especially severe Sn" Qima, .fc
which - imifonn appBcadjpn r= p£'
law .by . officiate has TOt besed-a ,
noteworthy cbaiaeteriedSc VMrf
public ndministratidn. A&o-^Ekb
other- Chinese tews, the tags*
mentation . of ' those V affeottug;.-
; foreign trade - and investment
Will remain subject; to chtaagfeg
pohdes- At the imnuiad^.hnv.
ever,, foreigners veer pi eaqeX'ffc:
encounter hehrfitl and_- reasoa^ .
able tax . officials . wSBqg to tiy-

reflect “the principle' of .gener-
osity and simplicity, ” surely
admirable statements for a
Ministry of finance anywhere
in the world. However, prob-
lems remain to vex tax officials
and taxpayers alike.

What, for example, is an
" establishment whose income
would be subject to taxation -at

UtdACS> lCpdJ"UICHl AM LUC AVI iU

of goods. These are specifically
mentioned neither in the new
laws nor in the new regulations.
Yet they are of increasing
importance in China’s _ foreign
trade: hundreds of such con-
tracts have been signed. Officials
have informally expressed the
view that hi principle income
from such transactions should

a rate of 33.5 per cent under a
1979 law. In the special econo-
mic zones hi Guangdong and
Fujian provinces, a 15 per cent
tax rate applies to foreign enter-
prises in these zones, which may
be owned 100 per cent by
foreigners, must be wholly or in
great part export-orientated.
With The basic tax rates in

perience is gained: the low tax
rate in the ’ . special economic
zones, for instance, may be off-
set by the teck of access to the
domestic market and to the high
cost of land and labour that may
be fixed through /negotiations
wife local authorities. Equity
joint ventures may be too time-
consuming to negotiate: by cbm-

Wh ether fee foreigners’ am for
bility win survive , fee first fin--
position of tax wtQ remain to
be seem . •

Mr Lubman is .W"Amerfca*i
lawyer based in San Frtscwco
who specialises ' . in - Chinese
affairs and frequently travels to
China. • - • -?v

APPOINTMENTS

HOW GAS PRODUCED

President for Wilkinson Sword

- Mr John Bloxddge has been
appointed president and manag-
ing director of WILKINSON
SWORD, with operating res-

MORE SHREDDIES

possibility for businesses in the.
UK, Europe. Africa, Latin
America ' . and the Pacific
Wilkinson Sword is part of
Allegheny International Inc.,
with headquarters in Pitts-
burgh. Pennsylvania.

. Hr John B. McGrath has been
appointed managing director of
COMP AIR CONSTRUCTION &
MINING from July L He will
succeed Mr John F. James who
is given the newly created post
of chairman with special respon-
sibilities for business develop-
ment -Mr McGrath was previ-
ously chief executive of Stone
Platt Electrical;

*• .

Mr A. R. Barnes and Mr U. A.
Youngman are appointed to the
board of PIONEER MUTUAL
INSURANCE from July 1.

★

Mr Andrew Wood. Flockhart
has been appomted to the n ep
post of managing director of
LANCASHIRE ENTERPRISES.
This is fee key position in an
industrial and training initiative
launched by Lancashire County
Council. He has special know-
ledge of the county's problems,
having worked as deputy town
clerk at Blackburn Borough
Council.

+

Mr Pan! Kohler, at present
managing director of Barclays
Asia in Hong Kong, and Mr
Dennis Thompson, manager at
BARCLAYS BANK INTER-
NATIONAL’S Union • Court.
London branch have been
appointed international finance
directors . at Barclays Inter-
national’s bead office in London..

*

TEXACO has elected Mr
James L. Dunlap as vice-chair-
man from July Z. He was vice-,
president of Texaco Inc in New
York.

★

Mr Edward Ben tall has
succeeded Sir James Spooner as ■
chairman of BENT ALLS.

*

Mr Nigel J. C. Turnbull has
bee n appoin ted financial director
of HUNTING GATE GROUP.-
He moves from Noble Gross art
where he ' was an executive-
director.

•Jp

Mr Simon C oningham has i
become deputy manag in g
director of COMAG, and Mr
Sim Ota Woolfries, marketing i
director, joins the board. Hr J
David Orme becomes client rela- j
tions director, and Mr David
Garratt becomes sales director.

* t

. Mr Paul Preston, a member of ]
the original group of Americans- i
to introduce MCDONALD’S to :
this country, has been appointed i
1 assistant managing director and ]
chief operations officer for the s

WITHOUT EATING

MORE FUEL

Most breakfast cereals

are supposedly ‘packed
with energy’; but
Nabisco have been

trying to produce
Shreddieswith
less of it

Like any fuel

conscious company,
they took steps towards

energy conservation
long ago. But this often
involves high technology;
consequently, Nabisco
called in the Technical Consultancy
Service of Eastern Gas to take a look
at their baking line.

Working closely with their client,
Eastern Gas recommended and
installed a new method of firing the
oven. The result was a 21.6% increase
in production, for the same amount
of Gas.

But because of the improvedheat
distribution in the oven, Nabisco also
gained on product quality. And they
even reduced their maintenance costs
into the bargain.

■v Now the opportunities
to make such dramatic
savings as these are
r\ by no means rare:
3 we can show you
■v many other case
histories where
considerable econ-
omies have been made.
The common factor is
that the savings stemmed in each
case from a change of attitude in
,v '' , the companies involved. They
realised that fuel conservation is not .
only in the nation’s interest. It can
also be highly profitable.

So it’s well worth looking at your
own use of fuel, and getting some
expert advice on how you could save

more.

Then, next year; we might well
be asking you to let us feature your
own company’s dramatic savings in an
advertisement like this. ^

femty-to’get > ''x-'grtet«r- , ii&^r-''-
i standing of business, '■ - / ; . v< -

Mr John Bluxddge

fast service hamburger Testau-
rant group's English company.
He was operations director and
retains overall responsibility for
running fee restaurants.

it ■

Hr James Friel has been
appomted production director of
POLYWARM PRODUCTS.

★-

Hr Richard Mansell -Jones has
joined J. B1BBY A SONS as a
nonexecutive director. His
other, directorships Include
merchant bankers. Brown
Shipley A Co, will continue as
alternative director to Mr George
Antiglevieh, another 'non-execu-
tive director of J. Bibby.

*

Mr Gerald A. Key has been
appointed deputy managing
director of CROWN HOUSE
ENGINEERING.

★ '

Lord Bancroft has joined the
board of BASS. He recently
retired as bead of fee home civil
service and permanent secretary
to the Civil Service department.

Following ' the death of fee
chairman. Lord Invexforth, Mr
Vincent Weir has been appointed
chairman of: Andrew Weir &
Go.; The Bank Line; Andrew
Weir Insurance Co.; Andrew
Weir Finance Co.; The Forrest-
dale Insurance Co.; and Bank
Line Travel. All are members
of fee ANDREW WEIR GROUP.

- ^ *

Mr Andrew Leslie has been

appointed managing director of
LESLIE & GODWIN REINSUR-
ANCE.

*

On July 1 Mr Peter Bryant, an
under-secretary at the Depart-
ment of Industry, will become a
non-executive director bf
THOMSON MAGAZINES. This
appointment is part of a wider
programme to give selected
senior Civil Servants the oppor-

' Mr John ' M. JF. Padovxn Ttoij
been appointed deputy chairman
or COUNTY DANK froimJuly L ,
_He continues a£s cMtf.dxecatiih^ *
a pomtioa: he. has held since
1976. : W -

V ' •;«

■ Mr Douglas Y&tei, fihance
.d irector;. has; been . appointed to:
fee board ; of tha.-. RANK •
ORGANISATION.

- - . • • _•••'" ifr. 1 . ■- ; • ;-■• ■'

Mr -J. P. Merrill lias been
a ppoint ed to the hoard of-
INTEltNATlONAL . ■ PAINi;

- ■parent .jroinpanjF . of fee Inter-
national .. Paint -Group". He •' is
responsible for operations in fee
U.S. and Mexico. *

• ‘ ‘ ‘ A 1 ■

Mr ,P. X Cos Us -has', been -
appointed a nonexecutive direc-
tor <rf LEIGH INTERESTS /;•••

••

SCANIA (GREAT BRITAIN^'
has made fee followfrig 7 appoint
ments. Sir Archibald Ross has re-'
tired as chairman and has.-'been -
succeeded, by Mr: A^ -Br (TI m,Y
Wentiy. Mr Wernly is an, Adviser :•/
to the Midland Bank Grp&p,: v a-;.
dErector of .several Ati as Copco
subsidiaries in the tTK, as:wfllof>
Saab (Great Britain) and: ofeer
companies; -Other newcomers.' to
fee board following the yethe;'
ment of Mr GSsta Nilsson arerMr
Frank . . . Andrew, director .V of
Mallinson Denny (U.K), fonner

- director of Leytend Vehidesr iid ''
former managing director of - Lfey- .
land Australia, and Mr Carl-Axel
Carlson and Mr Geyrge KprastdEtd
from' Saab^Srania Sweden. ,i ' :V- v

' -• _• ' . .■':■’■■■
Mr X Cfiye Denjey has “been, .
elected chai rin an of ' fee- cb udriT ‘
of the -INSTITUTE' OF- THE
MOTOR INDUSTRY, •. for" fee-
third time. Following the.
resignation' of Mr J. E. "Wri*.-
Mr Birch , rem ains a -cbuptil
member- , ;

★ - U': "

Mr Joseph Bailey,- director of*
design, construction - and-.- engin*
coring at Leeds CS^ CoundLis * ■
to be the GREATER;' LONDON '
COUNCIL’S controller ctf boosing
and technical services.' He -will
succeed Mr Harry Simpson, who .
retires on June 30.

Mr Christopher It Reeves
been appointed a . noxvexwutive . - -
director of BICC frqrm Jape 8._

He is deputy chairman and group -
chief executive .df.^ Morgan fStefr
fell and Co.'. He is'-ateo a director
oE Bank of New' South- Wales;, '
Midland and International Banks;

and Alltenz International' £ustm'
ance . ." ‘ ■.

Mr John CauidWcJI has been
appointed director of liucrkeCing. -
building .products atvisrlon/of
TAC . CONSTRUCTION' MATER-
IALS. - He was marketing and -
distribution manager. TAG is ;a-
Turner- Se NewaU .company. i-/~

SHOWNGIANT

BRITISH GASf^

DONT WASTE YOUR ENERGY

SUCCESS

^■sl

- . -1.

i

* itiitueiai. j. lines r rju uy June n - jlwo^

Conparies aadMarkets

aa

COMMODITIES AND AGRICULTURE

-.-jS'

Pledge to

British

fishermen

By. Richard Mooney *" 7

BRITISH : FISHERMEN .-were
reassured yesterday • that. ■ no
EEC: fishing policy deal would
be allowed through’ in Brussels
without reference .. to. them. . -

Following reports that Britain
and France were near, to agree-
ment oh.- the question -of access
for continental vessels in waters
near- to Britain’s coastline, Mr.
Peter Welker, the Agriculture
and fisheries. Minister, told
representatiyes of the National
Federation of Fishennea’s
Organisations tiurt any proposals
made in Brussels would be dis-
cussed with -the UK industry
before a settlement was reached.

Common Market Fisheries
Ministers are to reopen talks on
the common fisheries policy
CCFP) nest Tuesday but it
seems unlikely that bard nego-
tiations will resume on . the
main remaining issues of catch
quotas and access, which hare
been -Stalled since last Novem-
ber, until a later * fisheries
council Neat week. the. Minis-
ters are expected simply to state
their initial .. reactions to .new
proposals currently being For-
mulated fay the EEC Com.
mission.

Apart from, standing firm on
demands for exclusive access
within 12 miles of 'the UK
Shores-subject to some excep-
tions, based oil .historical fishing
patterns — the fishermen are
anxious that Mr Walker should
resist any .further reduction In
Britain’s cod .qoou share.

While successive' Commission
. proposals - have - ; mrnnt jvh f #(i
Britain’s overall share of mam
species quotas at around 35 pear
cent, ’ the. quota proposed for'
cod; 4he traditional mainstay of
-the ' UK fishing industry, has
been progressively reduced'
from- 49 per cent to about 41
per cent

Mr Walker is reported to
have declined at yesterday’s
meeting to make any promises
on operating subsidies, which
the industry -claims, are vital
to halt its. steady deegne in
catching power and therefore
to maintain .Britain’s negotiat-
ing strength in- Brussels.

Last year British fishermen
received special Government
operating subsidles-worth £25 in.
It has . been suggested. 4hat this
year Mr Walker is keeping back
the aid so - that he can use it
as a “ sweetener ,r *. .for.', tiie
industry if he has to- announce,
a disappointing CFP deal.

move

BY BRIJ KHMPAMA IN «NEYA

TIN- PRODUCING ' and oon-
snnring countries axe -Moving
towards agreement to • taple-.
merit the . sixth Interna tbmat
Tin Agreement for. ‘.a limited
time period .without" Che UA,
the . world’s ' largest importer,
and Bolivia, an - Important
producer. . '• » .

Although the Agreement^,
collapse cannot yet be ruled
out. the. Focus of negotiations
among the 19 countries which
have so far ratified the pact is
on finding, ways of keeping it
alive rather than allowing it to
expire,

The mahr wrange is between
Malaysia, -which dominates pror
eviction with 35 per cent of
total world output, and the
European Community and
Japan which together buy
about .44 per cent of world
■imports. ..

.Malaysia is reluctant to
breathe life- Into the Agree-
ment at any cost Its chief
concern is to ensure that tin
prices can be .maintained at
sufficiently high levels to pro-
vide export earnings needed to
finance some of its ambitious
economic plans. ' The present
Malaysian government is so
longer convinced .that co-
operation through the tin
agreement wi& serve - those
purposes.

But other " producers, .ind tid-
ing Indonesia, Thailand and
Australia. are keen to protect
the; Agreement and implement
tiie new .pact as -soon as the
existing fifth acoord expires on
June 30... ." ■. >

The EEC fears' th^t collapse
of negotiations here will open

• . -J ' ~ ••

the way to creation of a price-
rigging cartel of tin producers.
•Malaysia, Indonesia and Thai-
land have already said they are
studying plans for a tin pro-
ducers association bat deny that
they are ai mi ng at cartelisation. -
{The Community is taking a
flexible approach and has sug-
gested the agreement’s pro-
ivisional application for a 12 -
'mohfh' period after which its
effectiveness would be reviewed.

- ."A suggestion going the
rounds among producers Is to

- extend the deadline for ratifi-
cation of the proposed agree-
ment for three months after
which a .meeting would again

- be called to decide oh whether
the pact should be operated.

-- Hie -new Agreement differs

significantly from the current
one because the buffer stock
must be paid for, equally by
mandatory contributions from
both consumers- and producers,
rather than by producers alone
as in. the past.

The absence of the U.S. means
that the smaller - consumers
countries would have to con-
tribute more towards the
planned buffer stock of 30,000
tonnes paid for directly and
another 20,000 tonnes bought
against loans if required;

Some delegates argue that the
absence of both, the U.S. and
Bolivia will be a blessing rather
than a handicap for the new
Agreement because it will’ make
decision taking by the govern-
ing council much easier. •

London tin market hit

BY JOHN EDWAROS, COMMODITIES EDITOR

TIN PRICES fell heavily again
on the Londpn Metal Exc hang e
yesterday in the absence of soy*
support buying from the buffer
stock 'of the International Tin
Council. Cash tin closed £230
dawn at £6.320 a tonne as a
result of continued speculative
seating..

However, the Straits in price
in the Penang market overnight
held steady at M329.21 a kilo,
M$6 above the Agreement’s
“floor” level of M$29.15.

Values on other . London
metal markets rallied, after -
'opening lower, following the
-fall in sterling against the
doQar. Three months hlgier*

grade copper touched a 46-
month low of £741 in the- morn-
ing, but* recovered to £75&£5
a tonne at the afternoon close.

Reuter reported from -Salt
T.ake City that Kennecott
Minerals, -announced if was
reducing its minimum, price for
copper cathodes, by 6, cents to
70 cents a pound, effective
immediately. In March Kenne-
cott said -it - was changing its
pricing method to sell . its
copper at a 5 cents premium,
over Com ex quotations, but
with a minimum of ‘76 cent*.

Its other plan to revert to a
producer price quotation from
Jnyl 1 remains unchanged, the.
company emphasised yesterday.

BY NANCY DUNNE IN WASHINGTON

T Tffft Ttai p iii / Ii!in|wi^ wfl nn h flB

devised a “secret plan” -which
proposes”, spending - between
1 120 m and ^i50m for each of
the fiscal -years from .1983 To
1987 on strategic materials re-
quired by the national defence
stockpile. .

.' The - plan sent to Congress
does sot identify the materials
to be purchased. for fear that
doing so would drive prices up.
However, the - Federal - Emer-
gency Management Agency
(FEMA) has released a list of
Ifi fap. priority . materials it
bopefrto purchase in the mext
-Yevf' yeats,-, sundatop FEMA
officlri.h^s^.the secret plan

“should contain no surprises.”

FEMA has identified the
following 15 materials as top
priority: aluminium oxide

bauxite, cobalt, . columbium,
fluorspar, manganese . dioxide,
nickel, platinum group metals,
rubber,' tantalum, titanium,
v anadiu m and various medicinal
raw materials.

Since the election of Presi-
dent Reagan, the Gfeneral Ser-
vices Administration (GSA) last
year made its first big stock-
pile acquisition for more than
two decades when it bought
5,2m lbs of cobalt from Zaire
for 378m. It has also con-
tracted to purchase, barter and
exchange 1.6m tonnes of bauxite

from Jamaica.' .

, Its other ’ smaller purchases
include 25.000 tonnes of refrac-
tory bauxite from China -for
$3£m; 2,550 troy oz of iridium
from South Africa for $lm: arid
30,000 lbs of tantalum for 31 Jim <
from various sources..

Funds for the purchase of
more materials required, are
suppled to be raised through
the sale of surplus tin- and a
resumption of silver sales. -How-
ever, the money actually- avail-
able to the GSA depends on
the annual appropriation made
by Congress. A request for
$I20m for purchases in 1983 is
pending before Congress.

U.S. seeks
total ban
on whaling

By Our Commodities Staff -

TUB U.S. Administration has
confirmed it, will press
for a total ban on commercial
whaling at the annual meet-
ing of the- International
Whaling Commission in
Brighton next month. The
U.S. and many other member
'countries supported a eafl for
a ban at last year's IWC meet-
ing but they just failed .to
reach the required 75 per cent
vote.

.- The U.S. has threatened
that it will exclude .any
nation ignoring a, ban* or any
other IWC-approved restric-
tion on whaling, from . its
fisheries.

But UB. government action
has not gone far enough so
far to satisfy antiwhaling
groups. Compared with the

massive and sustained pro-
w haling lobbying ca mpai gn
by Japan, the world’s leading
whaling nation, the U.S. effort,
has been “ listless,” Mr. Craig
Van Note, a leader of the
Monitor Conservation Group
told a Congressional commit-
tee this week. “The res-
ponsible officials in the Com-
merce and State -Departments
have shown little initiative,”
he added.

Frost damages
Australian
citrus crops

SYDNEY — Australia’s 1982
citrus crop has been badly
damaged by severe frosts and
exports might -be affected, the
Industry has warned!

Frosts have occurred on
several nights this week in the
main citrus regions of south
Australia' and Victoria, where
freezing - temperatures are rare.

They added itVrlH be. a week
to 10 -days before a definitive
assessment can be given, but
growers have already reported
substantial damage.

• The: government’s Bureau of
Agricultural Economics! is due
to give its -first estimates of
likely citrus output and exports
for. the 1982-83 year ending
June 30 in its trends publica-
tion next month.

- In the April edition, the
Bureau said Australia's I981.-82
citrus output was estimated at

450.000 tonnes against 537,000
previously. - while 1981-82
exports were estimated at

32.000 tonnes compared with

34.000 previously. '

Reuter

FARMER’S VIEWPOINT

Moisture: the secret

of well-filled ears

THE. -FORECASTERS are at it
again, prophesying a possible
21m tonne UK -harvest this, year
and exports of 6m tonnes of
barley and wheat to markets
already overloaded’ with enor-
mous stocks from the new world.
This means, of course, a great
Increase in the amounts pro-
vided by FEOGA, the Com-
munity far fund, to lubricate
these exports.

Let me say straight - away
that these forecasts are -within
the realms of possibility. They
are based on average yields of
grain multiplied by the acre-
age devoted to' each crop. The
term average yield, is to some
extent derogatory. Few farmers
will .admit to harvesting -such
a low quantity as just over 2
tonnes of wheat an acre, the
present UK average, They all
aim at 4 tonnes or even more.
If they don’t achieve this they
don’t mention it, even to their:
closest friends.

But the achievement of even
average yields is at the moment
far from certain. My own crops,
particularly! wheat, have never
looked better. Standing will
and of a rich bluish colour .de-
noting.. maximum health and
with very long ears. These have
just finished flowering; the
germ' , is set; all that remains
is for the germ to become sur-
rounded by the kernaL

Shattered hopes

Nevertheless, even with this
promising show there is a doubt.
I have never seen wheat ears
emerge so early in the year.
On iny farm some wheat was in
ear before the end of May —
at least 10 days ahead of nor-
mal. It always used to be said
that there was never a May
without a wheat ear and occa-
sionally one was to be found,
on a dung heap. But I -never
saw one in a field before.

I believe this phenomenon
does . give a clue to possible
yields this thnC, and "perhaps
an* explanation of 'shattered
hopes of record results.

Qp my farm there has been
no more than an inch of rain
to date, since the beginning of
April, and the weather has
been hot and sunny for much
of the time. There, was
moisture in the’ ground and it
fed the crops as never before.
The dry weather has prevented
the spread of foliar diseases in
the wheat, and the heat ’and
humidity has -been like a hot
house. Why my doubts then?

If the top leaves of the wheat
plant are examined they show
signs of stress, twisting and
pointing skyward instead of
hanging limply down. This Is
caused by lack of moisture and
could get progressively worse
until relieved. The spring and
early summer here have been
very similar to conditions usual
in the grata growing areas of
France. There' an increasing
number of fanners find it essen-
tial td irrigate, their cereals at
the ear emergence stage. Even
so they seldom achieve- the very
high ' yields, -talked about' in
Britain, .simply because - the
summer beat causes much
earlier ripening. - The wheat
harvest around Chartres for
instance js usually over by
July 20. My own harvest would
normally be four weeks later.

During the 1976 drought
much tiie same conditions pre-
vailed. My own harvest was
finished by July 29 and the
yields were definitely down due
to premature ripening. The
outcome of this.- year’s wheat
yield will be decided by rain-
fall within the next few days.
If there is a reasonable amount
the plants could absorb the
moisture to their profit, other-
wise their maturity "will be too
far advanced.

Paradoxically, winter barley
looks quite reasonable, and ear
emergence in mid-May coincided
with their still being sufficient
moisture in the soil for full
development The trouble is
that 1 ploughed up and re-
planted about -half ’ mine because
1 thought it had suffered from
too much frost All I can say
is that with the benefit of hind-
sight I. should not have done so.

It was replaced with spring
barley which started very well

and (s already at the ear emerg-
ence stage. But iris now suffer-
ing quite badly both from lack
of moisture and mildew for
which the hot- and humid
weather of the last few days
has been quite literally a forcing
house.

Mildew once started will
spread like wildfire. One field
which was showing few signs on
a Tuesday was in need of spray-
ing with fungicide by the
Friday. The effect of the mil-
dew; is that it Mils off the
leaves which feed the grain and,
if allowed to persist will ruin
the yield. .My spring barley
crops are examined dally.

Lambs

The varieties I sow are sup-
posed to be resistant to mildew,
.but this resistance can break
down in the. face of a bad
attack. Or the pathogens which
cause the mildew can mutate to
overcome this resistance.

The main beneficiaries of the
weather .have been the lambs.
There has been enough grass
for them and an absence of
parasites, so they have had little
to do but lie around and grow.
In fact they need marketing
fairly quickly in case they grow
too fat This Is particularly
serious at the moment, because
if they. fall to get graded for
being too fat, I would lose the
premium on deficiency payment
which at the moment amounts
to over a third of the total price.

My most fervent hope is for
-a -gentle inch of rain every
weekend for the next four
weeks.: Why the weekend ?
-“Simple: T would be able to make
hay without having to pay week-
end overtime.

John Chernugton

S. African wool output up

PRETORIA — South African
wool production in the 1981-82
(August to June) marketing
season rose almost 4 per cent to
105.73m kilos greasy from 101.8m
kilos in 1980-81, according to the
wool board.

Output in 1981-82 was the
highest lo 10 years. The effects
of a drought which has affected
some wool growing areas since
December 1981 will only be
reflected in 1982-83. ’

In wool growing areas In the
south west of the country
fanners sheared 20 per cent
more wool per sheep because of

fine winter weather, he added.

Sheep numbers were slightly
lower at 28.3m at the start of
the season against 28.9m the
previous August
About 92m kilos of producers’
wool, representing 90.5 per cent
of offerings, was sold at auc-
tion during 1981-82 compared
with 95.8m kilos, 96 per cent of
offerings, in 1980-8L
Main .importers of South
African wool were the UK, West
Germany, France, Italy. Japan
and the U.S. in the past season.
Reuter

LONDON OIL
SPOT PRICES

teAS oiii futures BRITISH COMMODITY MARKETS

AMERICAN MARKETS

T

Latest

os

or.—

wro*;-. 1

CRUDE on— Fpp (B par barrel)

Arab Light! 133. 50-53 jB-

Iranian Ugbt..~.,....i3a.3M8JI
Arab Heavy. ..3140 •

Nortfl Safc<FortH»J..H5J»3S.10 -0.08
Afrloan(Bonny U*ter 1 35.25-M.B«i,..-...~:.

-Weakness- ta physical* aod-tNew
Yorir pfoOucmi- * fcMar-.fluaiiliio and
prioss drifted [unbar. ,Ut*r. .U-S. buy-
ing 'attedtad- prices. prt* Premier

tana..;-.-’..-
July. >_>,..
August;.... .
Sapt. 203.85

oto—

, * UJt - ,
fear tonne
l 2B1.00
808.00
803.95

PRODUCTS— North Wsst Europe. :’

(9 pw tunnel

Premium gasoline...! 5Z2’5K'l + }*5 ’

Gas oil.... ..J 204-295 J— 14

Heavy fueloils j H8.1TO

Ncntoi....;.-

Deb,;.:.;.-..,.

Jan

Feb......-,.

285,50

266.00

280,00

301.60

2BB.00

IJMU0.
ijn

+H26iHMWa»
— O.j&Q 1 2aW0-B3.M
-CJM08.M-8SJO.
+OJSp • - .

+ 1.MIHS.D3-87.M

•fg.8 fl2Ba.no

BASE METALS

BASE-METAL PRICES wn» mixed oo
Hie London Mstai Exchange. COPPER
M tafaaeply In sariy. trading, (Meeting
heavy overnight U.S.' selling, and
touched CM l. time month t. prior to
■ rafeerig ’to ctoae « £756. inflot fiend by
ciwranoy corwkie muons. Hia t attar

also influenced -LEAD, finally £301.5.
and - ZINC vditah.. closed at £286.5
. having been as low as' -£383 in initial
dMKngs. ALUMINIUM closed , at
£537.5 end NICKEL at £2337.5. _

Aug' 106.00. Sept 106.00, Jan/M tT
117.50 East Coast sebem. Am* un-

Spot J 2865-7

3m withal .2911-8

2680-90 L— 20
8030-5 - J-5

: turnover Tfl® (2.438) k*a <* ICO

GOLD MARKETS

■' Gold fell 31* to $326*327* to
tiie London bullion market yes-
terday. l It opened at 6328*429*,
the highest level of the day; and
fell to a low of $324*-325. •. The
metal was fixed at $329-00 in
the. morning and $326.75 In- the
afternoon.

In Farts the 12* Idfo {&KL bar
was fixed at FPr 65,900 per kite
(S325.55 per ounce)- in the after-
noon, compared, with FFr 6&500
($328.13) in the morning, and
FFr 66,500 ($32126) Wednesday
afternoon.

In Zfcrich gold closed at $325-‘
$328, compared with $326-329. ■

LONDON FUTURES

“ re »

ajn.

+ or

p.m. i + or

COPPER

.Offetal

UnoRHdAl

« r

• ir

£

722-4

-117

73 14-2.5;- 4

3 mths

7454-6.

-Ik

-.766h4

-14

Sattlemt

722.5

-11

—

—

Cathodes

711-3

721-3

-4

737-6

-M4

747-8

-ja

SettUmT

713

, |M .re

UA Prod.

*68-76

—

Nickel — Momms: Cash £2,885, three,
nj&inhs ESI!, 11 . 05. 10 , 15. Kerb:;;.

Three months £2915. Afternoon: Three
months £2930. 35, 45. X. Kerb: Three
months C2935. 38, 40. umover: 688
tonnes.

* Cents per pound. \ MS per fcito.
t On previous unofficial dose.

WHEAT

, BARLEY

•

restercTyi

l+or

Yest’rd’ytJ +er

Mnth

close

| -

oloee

j

118.85

109.00

j— C.16
1+0.16

' 1

r

L

Sept 4

104.80

u^b.io

112.60

108.60

j+0.0b

Jen!Z]

116.30

+ 0.16

112.35

1+ftOb

Mar.

119.86

J+0.1B

115.05

M>.08

May,.!

123.10

i +040

11B.8Q

+ 046

PRICE CHANGES

In tonnes unless otherwise stated.

SILVER

.Montt

YeafK»ey*i]
oloee • j

;+oi*|

Buelneis

Done.

Augirtt>-i

;8ept r mb'rl

Oatober...

November

■December

£ per troy |
- ounoe 1
iw.Bftr.m
; itt.4M.ra
. .. IK. 19-240
1B.BAN
19E.Bft5.75

as

16949440
19046
182.16
.-102JO
. , 1SS.B6-4.2fl

!-• Turnover 805 (882) lots of 100 troy
;ozs.

Amefgatnated Metal. Trading reported
that in the morning Three - months
Higher Grade -traded at £744.00, £3.00,

44.00, 4350. 43.00. 42.00k 41A

<150. 42.Q0. 43.00. 4350. 44.00. 4550,

46.00, Cathodes, three ro or v tti s £737.00.
Kerb: lugher grade: Three months
£748.00. 45.00. 45.50. 4500- Afternoon:
higher grade.’ three- months £750.00,

51.00, 50.00. 50.50, 5U», 66.0ft 56.00.
54.50, 55.00. 56.00. 55.50, 56.00. 55 JO.

57.00, 57 SO. 57.00. 56.50. Kerb: higher
grade; Three' months £7700. 56.00.

56.00, 56.00. 57.00, 5&00.. Turnover:
28,600 tonnes.

Silver was tixed 2.4p an ounce lower
for spot delivery in the London bullion
market yesterday at 331 4p. .U.S. cent
equivalents of the fixing levels were:
spot 588.2c. down 3.6c; three-month.
609.5c, down' 4.1c: six-month 631.4c.
down 4.2c; end 12- month 675.5c. down
4.3c. The metal opened at 333-336p
(592-59BC) end closed it 33&336p
(592- 596c}.

SILVER

per

troy oz.

, Bullion
. fixing

1 price

+ or

L.M.E.

. P-nv.
Unofflo l|

+or

Spot >.. —
3 months.
6 months.
13 months

Issimp

341.65p

isz^op

373.40p

is

M

3304Op
345.7 6pj

-i.fe

-140

Business done — Wheat: July 119.30*
118.60, Sept 108.00-108.95. Nov 11260
- only, Jen no trades, March no trades.
Msy 123.00 only. Seles: 107 lots ol
100 tonnes'. Barley: Sepr.104.flD-104.80,
Nov 108.60-106.50, Jan 112.35 only.
March no trades. May 118.80-118-75.
Sales; 94 lots of 100 tonnes.

HGCA — Locational ex-farm spot
prices. Feed- bailey: S. East 110.90, W.
MWs. 109.60, N. West-ma.ao. The UK
Monetary Coefficient for the week
. beginning -Monday, May 14, Is expected
w change to QD19,

RUBBER

The London physical market opened
slightly easier, attracted [sir interest
throughout- the day. end closed
uncertain.- Lewis and Pest recorded «
Jims fob price Tor No. 1 HSS in Kuala
Luftpur of 20B.D (seme) come e kg
and SMR 30 .178.0 (seme).

i, •_ ; 1

June tft

- June a

dose J 83081s -327 1< (£185-1861*1

Opening- JMiSSis-SMH

Morning fixing... .W3HB ’

Afternoon flxHigJ 8326.75 (EiaS^SZ) .

83003283*

635Q1*-331

5526.75

. 9326..

f£185-185le)

(£185-1861*)
(£183.826) -

(£183.435)

Gold Goins June 10

Kiugrnd 8336V3S7 Js(£10OV191i<)
IfiKrug *1751^l74l«

114 Krug , 838lj«W4
VIS Krug 836-57 rBSOUJtl)-
Mspleleaf ‘833644-3373* (10O3*-19U4)
New Sov 87814-783* IBHM4V..

lOngSov .
Victoria 8pv.
French 80s. ‘
fiOjosoe Max.
100 Got. Aust
620 Eaglof

880401s.- (£50ir4tt).
589-901* (£50i*-Sl)

37112-74 (£4012-48)

840132-404 (£80712-829)
8380-3281* (£181J-182fi
3408-415 (£231 1* -234)

TIN

a m.
Official

+or I pun.

- ^noffipUl

+«"
— 1

e ] £

e

B44«5

-112J 8310-30

-2SI

650B-10

-724. 6380-80

-1 Si.

Settiem't

6455

-110 1 j-

- —

Standard

Gash.

6449-65

-ITflJ' 6510-30

r-m

6505-10

,-674^.638080

-1*4

Settle ml

6455

-3Wj .

Straits €.

JS29J81

N.N.

NewYorw

tsasjai

1

LME— Turnover 58 (60). lots .of

10,000 ozs. - Morning: Thtas months :
3440. 3.5. 3.0, 2.0. 2.2, 2.1, 2.0. Kerb:
Nil. Afternoon:. Three months 346.0..
46.0. 46 .5. 4S.0, 46 A 46.5. Kerb: Three
months 347.0.

No. L

Ittlr

Yaetrys

■oloee -

Previous Businea
close I Done

COCOA

Futures remtaned steady whMn a
narrow range, wtefe actuate business
was too scarce, reported -G4I and
Ouflus.

... - -i.

July : I 4S.KLEd.50 48J030.WI —

Aug 50.00-58 JO 48.70-60 JO 60 JO
Jly-tspt SLOB-H,™ 60.10-M JB\

' ’ 62.80-62,70 62JS-&2.60

COCOA

LOOKING FOR
A BULL MKT.?

Our Research points to ; a major bull
market in cash.! - : .

Our analysis has important implications
for. those concerned withReal Assets, Equities,
Foreign Exchange and Interest Rates.

For more ^ mformatio^^^^^ the

coupon below dr telephone 01-6^*?296. .

Bos. Phone.,,....-.-:.~. H ^ -v,- ...

7 'Broken .ta Flmusdil EUm, ; ,

- Subsidiary of GeMenosua and Company, Inc.
Park House, '16 Finsbury tSrcns, London EC2M 7BJ

Tin— Morning: Standard . Cte h £6^85,
80, 55, 50. three mondu £6650. 4ft 30.
6600, 1ft 6500, 15. 10, 05, 10. X Site
Standard: . cash £8*46, three -months
£0080. 60, 70. Afternoon: Standard,
tfnes months to460, €0, SO. 40, 30, 2D,
15, 6*00. 6390 . Kerb: Standard,- dtrse
months £6370, 60.-50, 4ft 50. ‘Turn-
over: 3,615 tonne*. . . " . . ,

July —

Sept.

Dec — ^..-
March — —

May

July..—...
8opt ■ v ._-

878^0

906-06

84546

963-84

1004-06

1006-26

104646

Muminlum (mmsuL .htiwil

Free Mitt.. ^905/935 _.j’M75i1M6

Copper... _ L
Cash h grade...*? 32 -0.5 |£852

3 mth«_ C7S6JI3 -1^^880.5

Cash Cat hod 0-^722 . _0.5j£844.5

3 mths... 1^2748 -11^5 £878^5

Gold troy oz «... W36 J75— 1,5 *182

Lead Cash ,...*202.05 +5.78 £310.5

3 mths. £302,25 + 5 £323.75

Nlokel £3922 '£3974

Free mkL,.;.. 235i268c |S8G/265o

Platin’mtr ox*y £260 £260

Fream «.....„ £167.20 -0.25 £268.50

CtuloKsllvert ..;8370r880 836Q/57&

Silver troy oz... 33t.40^ — 8.40362^0p

3 mths-..;., 341.65^ -2.4b 373.60p

Tin Cash. £6320 ■ -230 £7083
3 mths.... ...... £6385 -182.5 £7217.5

Tungstei)22JDIb *111.68 *106.98

WolfrmStdllMfl M(118 ; 1* 106; 11C

Zinc Cash fe3B8.S + 1 2408.5 '

3 mths >£387.75 + 0.254414.12*

Producers. _4*86O;B0O( 1*886/800

Olle : ' \

Coconut 0»hiO (850 5u
Groundnut — l8595w
Linseed Cru do (£380
Palm Malayan |*512jl
Seeds I

Copra Ph ffp ...l*340u
Soyabean (U A) i *2 57
Grains : -’ *

BarleyFut. Sep £104^0

Main £136.75

Wheat Fat. Sep £109
NoJHarrfWInt/ t

_:.~.J*990
>.1*650

t

I >.1*510

'*330

\-2~\$216

-^0.10 1*104 .00
(£137

+ Q.15j£l23.15

+0J( 881.78 '
+ 4,Of- 007^08
+4^ S4M9.

T 984-77
+2^ 10054)3
+ 2XV 1025-23
+ 13-1046-42

LEAD

a.rri.

Official

+ or Mil.

— Unofficial

+ or
-t

ryth,

3 months
Settiem't
ILS. Spot!

2 1
1392.5-3A
! SOM -
. 2934 1

£ !' ■£ r *

+4,S520l.ft3 +67B

+4.25 302-.5 1+5

+441 !

l •25.7

Sales: 1,833 (2J81) fats el 10 tannss:
ICCO — Oa/5y price for June 10: 70.06
f70.18). Indtaatof prico tor June 11:.
70.82. (71 .07).

COFFEE

Reflecting »n eesier New Vork. does
Robustas opened sHghrty tower,
reports Drexef B unto am Lstnbert.
After recovering, values returned to
the lows foHowIng commission house-
- seeing.

SeIbiI 378 (471) lots of .15 tonnes.
1 TnM) Jdt-of 5 term as.

Phwlcsl , doming prices (buyers)
were; Spot 43,250 (49 top); July 51.00p
(5Q,75p): Aug 51.75p (same).

SOYABEAN MEAL

. T]>e [market -opened 50p down In quiet
condition*, - reports T. G. Roddick.
Prices, firmed on weaker start I no and
mixed- buying.

Other j

commodities!

Cocoa shfp't* -£905
Future 8eptfe905.5 -
Coffee FTSeptSlM® .

Cotton AJndex|76.l5c
Gasoil Jury..TJ*2B2
Rubber (kllQ).>W9^5p
Sugar (RawO.™K E fl6u .

Wooftfpa B4s M.|307p kilo - —

* Unquoted. xAug-Sspt. u June-July.
w May -Jane, y July, f Per 76 lb flask.
* Ghana coconut, n Nominal. S Seller.

+ 1 <£992

+4 [£961^
U- 11A£J 156,6
+ 0.3 77 ,30c

U893

+ 0J2B|53.5o
— 3 kl09
...>.|S88pWto

NEW VORK. Jons 10.
Copper cbminued under pressure due
to further technical selling end slack
demand. Coffee displayed strength In
tbe nearby positions on short-covering.
Heating all wes mixed in nervous
trading despite bearish supply-,
statistics. Cotzon was mostly tower on
fresh speculative selling, reflecting
favourable growing conditions, reported

Helnojd.

Copper— imp 57.50 (57.90). July
57.90-58.05 (58.40). Aug 58.85, Sept
59-60-52.70. Dec 02.OO-S2.15, Jen 62.90.
March 64.50. Mey 66.10. July 67.70.
Sept 89.30. Dec 71.85. Jan 72.40. March
73.95

"Gold— June 328.6-327.0 (327.2). July
329.1 (329.7). Aug 332.2-332.9, Oct
339.5-340.0, Dec 347.0-347.5. Feb 355.5.
April 383.4. June 371.4, Aug 379.5.
Oct 387.7. Dec 396.0. Feb 404.4. April
412.9.

Potatoes (round whites) — Nov 7B.0
(75.5), Feb 84.0 (83.5). March 87.0,
Aoril 97 0-97.4. Seles:’ 279,
gSllvBfc— June 601 .0 (588.1). July

Min-606 0 (592.0). Aug 612.4. Sept
D16.0-61£.0. Dee 640.0-643.0. Jen 050.3.
Match 662 0. May BB0.3. July 695.3.
Sept 710.5. Dec 732.8. Jan 740 3. March
755.3. Handy end Harman bullion spot:
595.50 (599.00).

Sugai^-No. 11: July 6.78-6.81 (0.84).
Sept 7.13 (7-16). Oct 7.20-7.23. JBn
7.70-8X0. March 8.41-8.42, May 8.65,
July B30, Sept 9.08-9.10. Oct 9.10.
Tin— 520.00-523.00 (538.00-540.00).

CHICAGO. June 10.
Lard — Chicago loose 24.50 (24.00-
24.25). -

Live Cattle — June 72.17*75.00 (71-47).
Aug W .20-64,30 (6342), Oct 60.95-
61.00. Dec 61.02-61.10. Feb 61.10, April
60.95-60.85. June 62.50.

Uve Hogs— June ,62.20-62^7 (60.951.
July.. 69,10 (57.60). Aug 57.15. Oct
64.62-54.50, Dbc 63.95-53.80. Fab 52.20-
52.30. April 4935. June 5000. July
50.50.

. tl Metro— July 27SV-276 (27*^5. Sept
77SK-Z7V* (274M- 279L-27fl^

March 293V May 302V July 309V
Pork Bellies— Ju[y 77.B0-77.70 (W.75).
Aug .75,50-75.80 f7*-S0). Feb 73.B6^
7320, March 74.15. Msy 74.00. July

73.80, Aug 73.30.

tSoya beans — July B32>«-633 (6304),
Aug 038>, (635^,). Sept 639. Nov 645-
640. Jan 660- 660V March 677, May
.690. July 700.

([Soyabean Meal— July 183.0-183.2
(182.4). Aug 184.0-184.1 (183.6). Sept

185.5. On 186.0. Dec 191.0. Jan 193.0-

193.5. March 198.5-199.0. May 2035-

205.0. July 205.5-206.0.

Soyabean Oil— July 1920 (19.18).
Aug 19.59-19.60 (19.48), Sept 19.86. Oct

20.05. Dec 20.42-20.41. Jan 20.70. March

21.05. May 21.40-21.45. July 21 .75-21 M.
t Wheat — July 343V343\ (343>fl. Sept

359-359 1 . (356l»). Dec 382-381 V March
39 7S. May 404.

WINNIPEG. June 10
SBerlay — July 124.10 (124.50). Oct
124.10 (124.00), Dec 125.90. March
128.40.

All cents per pound sx-warahouae
unless otherwise stated. " S per troy
ounce. 1 Cents per troy ounce.
it Cents per 56-lb bushel. 1 Cents
per 60-lb bushel. ftS per short ton
12.000 lb). § SCen. per metric ton.
55 S Per 1.000 aq ft. * Cents per
dozen, ft S par metric ton.

Wednesday’s closing prices

NEW YORK. June 9
ttCocoa— July 1415 (1431). Sept 1458
(1467). Dec 1524. March 1593, May
1637. July 1680.

Coffee—" C " Contract: July 137.00-
137.25 (139.$), Sept 128.74-123.99

(131 US), Dec 124 .20-124 .50. March
119.50-120.25, May 11 7.00-1 18.25, July

118.00. Sales: ft220.

Orange Jfllce .July 115.90-116.00
(113.90). Sept 118.40-118.70 (118J50),
Nov 121.20. Jan 123.00-123.30. March
124.55-124.70. May 126.10-126.25, July
127.6S-127.90. Sept 129.00-130X0. Nov
130.00-131.00. Seles: 1,500.

•Platinum— July 297.5 2980 (298J9Y.
Oct 304.5-305.0 (305.8). Jan 312.6. April

321.1. July 330.6. Seles: 1.302.

CHICAGO. June 9

Chicago l mm Gold— June 377,3
(332.2), Sept 336.5-336.8 (341.4). Dec

348.5. March 359.5, June 371J2, Sept

383.1.

EUROPEAN MARKETS

Lee d -M orning: .Cash £293.00, three
months £296.00. 9450, 9SJXL 95.60.
90.0ft 97to. 98.0ft 99-00. 300.00. 02.00.
0250, 03.00. 0*.00. Kerb: Three months
£300.00. 289.00, 99.60, 300.00. After-
noon: Three months £302.00. 03.00.
01.00. 02.0ft OZto. Kerb: Three

months £30 2. 00. CC-50, 02.00, 01 .C0-
Tomaver 8.250 tonnes.

ZINC

ajn.- rt»0Tj . iun. i+w
Official ; — .Unofficial —t

fill

m

. e..-; .£ .is

383-4 -14.1. 388-9 +1

3854-6 -124.- 357.5-3 ,+.25
| 384 —1441' —

— • *38-37.75

Zlno — Morning; . Three ' tnanrhs
£334. OOr 83.0ft 8340, 8440. 83.50.
8600, 87.00L 80.00. 88.0ft 885. SO.

-Xerit: Three ’ months £386.00. 85 00.
Afternoon:' Cetai £38840. three months
£367.00, 8840. Kerb: Three months
£386.00. 8740. Turnover: 9.7S tonnes.

Aluffllnm

| : U- erf -p.m. W-or

1 Official , — 'Unofficial — t

| i- 2 !’• - £ ' •' e •

[- 510-1 1-425. 517J +3JB

550-1 1-42&; 537-4 -+3

COFFEE

Yesterday'*

Close

Y-

Business

Done

S par tonne

July

Sept-... >.....

New- ...

January —>

1218-14

1128-50

1074-76

1056-00

104540

+ 6.0
— 11.5
-74

ns

1280-00

1142-26

1080-70

1069-52

103540

-7 4

1040-35

101040

& -

Yeaterdy*

Close

+JT

Business

Done

ifl

JUnli.„._.>.

August^..-

Ootob«r>„.

Deb..-

Feb„.’>:.-...
April -L.

'* £

per tonne^

TUM-iXS

1S1.M4Z4

181.8048.1

1S9JM584

T5B4WB4

+OM
+0.46
+O.SE
+ 046

iat.lft29.BD

162.00-5120

1S5J9MBJM

AhantniUH — MomiAg: Three months
£530, Oft 29.0ft 30X0. Kerb: Three
months £530.00, 31J50, 30.00. Atter-
roon: Three - mondts ’ ESi.fB. 34.50,
35 Oft 35.50, 3£L0ft 37.00. 37=0. Kerb:
Three nwnrtia £537.00. Turnover. '
111.25 loftnee.

ICO Indicator prices :tor June- -9
(U.S. cants per pound): Comp, dasly
1979 122-35 (12332); ISrtlay average
100.47 (120.20).

POTATOES

LONDON POTATO ' FUtlmES— Heavy
selling moved ail posihone lower.

aapeaatiy distant months, reports Cotoy
and Harper. Closing prices: Nov. 63.30.
-0.60 (high 63.80, tow 63.00); Feb
71.00. -1.10 (high 7lJ0^ tow 70.80):
AotH 79.70. -2.10 (high 80.50, low
79.50);. May 90.0ft -2.00 (high .91.00,
tow 89.70). Turnover? 350 (457) tore at
40 tonne*. - -

GRAINS

LONDON . GflAINS-r-WhWfc - U.S,
Dari: Northern Spring No 1 14 per cant
June 111.00. jtrfy >10.50. Aug 109.75
vansbipmeoit Em Com filers.

English Feed tab.Ocr TWJ5 Eaat Coast
Jan/Mjr 121.75 Ent Coast eeflera.
Maize: F ren ch second. fiaH Jone 136/35
transhipment fiaet Com oellm. -

S. African Whfto/YeHow June/Jidy
85.00 eaUer. Barley: English Feed fob

-Celee: *0 (162) lota of 300 tonnes.
SOYABEAN OIL— The market opened
SS.QO tower on mixed 'selling, reports
T. G. Roddick: Prices -steadlad late In
day on commission house buying.
Closing prices and business done
(U.S. 5 per tonne): Aug 495.00-96.00,
485.00- S3 £0: Oct 496.00-97.00, 486.00.
93.00; Dec -504.00-05.00. 506.00-01.00;
Feb 509.50-10.00. ,509.0008.5ft ..April
515.50-18.50, untraded: June ’516.00.
27-00, untraded. Turnover. 74 (201) tote
of 25 tonnes.

SUGAR

LONDON DASLY PRICE— Row sugar
£86.00 (£89.00) . a tonne elf Juns-July
shipment. '.White auger dady price .
£128.00 (£129.0D>. . ..

Prices ratoied etroui £200 from first
traded levats .loffowtog the detain* of
the ffteritog/dtalar parity. When New
York eased sharply .most of the gains’
were lost, rsoortB C. Czarnikow.

INDICES—
FINANCIAL TIMES

JuneB

| June B iM'tb agojY’ar ago

220.04

[231,42

[ 241.15

I 25245

(Base: July 1. 1952 —

REUTERS

100)

June 10

June 8

Mtb ago

Yarago

14094

1505,8

1567.4

1756.3

{Ba*ta September 1ft 1931 « WO)

MOODY^

•JuneS] June 8 :M'th ago;Y’arago

885.41

087.6 j 10084

1 1085.6

DOW JONES

Dow j

Juna | June i

Month |

Year

Jonas 1

,9- j. 8 1

ago !

ago

Spot |

1 22.07 ! 1 2 3 4 B] 12 5.60j
iaz.50|l23.5l| 128.781

Futr'al

—

(Bibk December 31, 1974 ■ 100)

PARIS. June 10.

- C ocoa (FFr per 100 kilos): July
971/995,- Sept 1027/1040. Dec 1070/
1065, Mar 1125/1135. May 1155/1160.
-July 1180/1190. Sept 1216/1225. Seles
at cbH: nil.

Sugar — (FFr per tonne): July 1370/
1400. Aug 1400/1402, Oct 1386/1370.
Nov 1360/1370, Dec 1380/1385. Mar
1485/1465. Msy 1500/1510. July 1530/
1S35. Sates u cell: 16.

- Soyabsana — (U.S. * per torms): U.S.
Two YeHow GuKports June 251.60.
July 2S3.60. Aug 256. Sept 25ft Oct
254, Nov 79*. Dec’ 259, Jao 265. Feb
2&9.50. Mar 273 seliere.

l o ym ee l (U.S. S per tonne);
44 per cent afloat 220. June 221.60.
July 222. Aug 224, Sept 226.50. Oct

229. Nov/Mer 236.50 seUera. PeHats
Brazil afloat 227 traded: afloat 228,
June 231. June/Sept 234.60, July 232.
Aug 235.50, Sept 238. Nov/Mar 252
seliere.

Maize (U.S. $ per tonne): U.S. No
Three Yetfow afloat 130, June 129.50.
July T29J50. Aug 129. Sept 129, Oct/
Dee 128, Jan/Mar 136.50 saHere.

ROTTERDAM. June 10.
Whew^fU.S. S per tonne): U^.
Two Dark Hard Winter 13.5 per cant
July 177.50. Aug 178.25. U^. No Three
Amber Durum June 176, July 177.50,
Aug 181. Sept 183. U.S. No Two
Northern Spring 14 per cent afloat 180,
June 179. Juty 178. Aug 176. Sept 177.
Canadian Weetam Red Spring June/
Aug 200.

No. 4 .Yeaterday Previous J

Business

Oort- close dPM I

dsn*.

tract

•

Seles: 2,648 (3.011) lots of 97 tonnes.

Tate and . Lyle delivery price for
granulated" baste white sugar wsa

£374-00 (hrk) a tonne fob lor horn* _ ...

trade and £200.50 (£204.00) (or export. COTTON
International Sugar Agreement (U.S.
cents per pound), fob and stowed
Caribbean petto. Prices lor June 9:

Defly Price 6.78 (7.09): 16-dey average
7.«M7£7).

vide -much hop* substantial

Improvement ' aeon.

SYDNEY GREASY WOOL— Close (In
order: buyer, seller, business). Austra-
lian cents per kg. July 558.0. S61.0,
562.0-559.0: Oct 528.0. 528.5. 628.5-
529.0: Dec S31.5. 532.0. 532.5-531.5:
March 536.5. 637.0. 536.5-536.0: May
541.5. 543.0. 541.5: July 545-5, 548 JJ.
un traded; Oct 544.5. 546.0. uniraded:
Dec 549.0, 552 J), untraded. Sales: 128.

LONDON .NEW ZEALAND CROSS-
BREDS — Close (in order buyer, seller,
business). New Zealand cents- -per kg.
Aug 378. 381. nil: Oct 395. 397. 400-
397: Dee 401. 404. 410-405: Jen 404.
406. 41 T -405: March 414. 415. 418-417;
-May 423. 425. 430; Aug 432, 437. 44ft
Oct 434. 439. 444-441: Dec 436. 441,
439. Sales: 38.’

£* per tohrte
Aun_'...ll05.W-WJ6 10MB4B.«0[miiUKjg
OtaL... Iff.HJMe W8.60-D8.G6i 10B.7MSJ1Q

Jan hl4.DO-16.DO 116.W-17.M —

March BljOMlJB 12U6WU& T21.7MIJS
M«y..„. 1SL5IH5 Jb 12M*r24.76j124 JUUI
AuH._jr»^-27JS[iefl.75-28JCl727J» -

OnL>...;)50.0g-Sl J0n2fl.75-Kj6|l23Jg

WOOL FUTURES

BRADFORD— Business is atiU vwy
quiet end there are aaveral oompteinto
about the earanetb of competiBon from
totpona.' Buying torougbeut is hand-to-
mouth and the retail end, «4 wed as
those nWng ovaraaes. does net 9>o-

LfVEBPOOii— Spot and shipment sale*
amounted to 2D tonnes. Although busi-
ness iwas not qui» it a stands till, law
orders ware about and operations ware
.severely restricted. International ■ affairs
interrupted the free flaw of contracts,
both In the Middle East and in South
American growths.

MEAT/FISH. .

SMITHFIBA — Penes psr pound. Beef:
Scottish killed sides 78.3 to 83 Jh Ulster
hindquarters 98.0 to 100.0, forequarters

56.0 to 67.0. Veal: Dutch hinds and
ends 117.0 to 122.0. Lamb: English
small 68.0 to 77.0. medium 64.0 to 68.0.
heavy 60.0 to 64.0: Imparted: New
Zealand PL B3.0 to 63.0. PM 61.5 to
K>.0. YL 60.0 to 60.0. Poric: English,
under 100 lb 32.0 to 54.0. 100-120 lb

44.0 to 52.0. 120-160 lb 37.0 to 48.0.
MEAT COMMISSION — Average Fat-

rtock prices at represantativB marked:
GB — Cattle S7.78p per kg 1w (-3.79).
GB — Sheep 137.62p per kg cst dew
(-34.89). GB— P»gs 65-39p per kg tw
(-8.07).

GRIMSBY FISK— Supply good,
.demand good. Prices at ahtp’s aide
(unprocessed) - per stone: shelf ccd
£3. 80- £5. 00, cottmga £3.50-£3 .80;
large haddock £4.20. medium £3.60-
£4.20, smell £2. 40- £2. 90; large platen
£4.50- £6.80, . medium £2.80- £5 30. best
■mall E3.40-E4.0ft skinned dogfish
(farpa) £5.00, (medium) £3£ft lemtn
■oto (large) £700, (medtirm) £7.00:
rockflah £2.00-0.60; sartho £Z50-£Z60.

COVENT GARDEN— Prices tor the
bulk ol produce in sterling per
package except where otherwise stated.
Imported Produce: Oranges— Jeffs:
20 kg Valencia -Latea 56 6.25, GO 6-25,
75 6-25, 88 5.86. 105 5.50. 123 4^5.
144 4J0. 168 44ft Moroccan: 16 kg
Valencia Lata* 48/113 3.80-6,30;

Outspan: i Navel* 40 5.35, 48 5.40, 56
5.95. ■ 72 5.80. 88 5.T0. 112 440, H*
3.85. 160 3.50.

.■•a*

i

[ikVi

THE PROPERTY MARKET ■ BY MICHAEL CASSELL

Public sector land sale

THE GOVERNMENT is pre- Only seven land registers nationalised operators. Much of
paring for a major campaign have yet to be completed, the land ris in inner eky areas
to sell off thousands o£ acres of including those for Corby, and the DoE believes that as
development land now in the Newark and Carrick. Eight much as 50 per cent of the
hands of the public sector. registers have just been com- sites have development capital.

UK-Dutch partners Brixton ■ Bid im^ications

buy in Bournemouth 1 gains tak stndyii

Department

the pleted, bringing

Some of the land on the new

Environment is planning what number to 358 and involving registers is efigihje for derelict
will amount to a massive land over 9,000 sites. land grants and could possibly

release programme and is cur- About 5,000 acres included on be included -in schemes which
rently identifying those sites, the first batch of registers; qualify for urban development
now owned by local authorities involving 21,000 acres . of action grants,
and the nationalised industries, potential development land, are The reaction of the devetop-
which have the best chance of already on the market and over merit industry to any widespread
finding private sector pur- 1,100 acres have already been land disposal programme is
chasers. sold. uncertain. There is a widespread

At this stage, no agents have But the new steps under con- belief that a good proportion of
been appointed to help in the si deration would represent a the land in question wfll have
sales programme. It is expected significant stepping up of the only limited development pros-
tfhat a decision on an advertis- sales programme, in marked pects. although' there .will

ing campaign, funded by the contrast to the actual compila- undoubtedly ; be exceptional

DOE, will be taken by the tion of the registers and the Packages which developers

autumn, when the mot attrac- first phase of disposals. would be happy .to purchase and

tive sites have been picked out. The DoE believes that about competition in these cxrcuan-
The Property Services Agency 60 per cent of the land which stances m ight be; intense. A
will be responsible for the sales has been thrown up by the deal will also depend on

programme. registers is in local authority the prevailing state of the

The land in question will be ownership, with a further 10 devel opme nt market when the
earmarked following the com- per cent owned by British Rail land starts to become available,
pilation of nationwide local and the balance held by other USA WOOD

BOSKAUS - KEYS, ' the
Chantry Keys-Boskalfs West-
minster . joint venture part-
nership is bnying the free-
hold of Bemesohs department
store In ComxnereiaJ Road,
Bournemouth . for >- a ami
approaching £9m. It. Will -be
redeveloping the 'site to pro-
vide about 12 retail
some within a shopping mall,
together with -a variety
market comprising itp to" 60
trading units. The develop-
ment will provide a total in-
vestment of £14m -and' will be
completed by the end of 1983.
Herring Son anti Daw and
Arnold Brown represented
Boskalis-Keys and are letting

pilation of nationwide local
land registers, set up under
the provisions of the Local
Government, Planning and Land
Act 1980.

About 87,046 acres have been
placed on the registers and a
copy of each is now deposited
with the relevant local authority
for public inspection. The DoE
believes as much as half of this
acreage has development
potential Potential buyers are
free to make offers for the land
and the owner must present a
case for not permitting its
release. Mr Michael Heseltine,
Secretary for the Environment,
has the power to direct a
disposal, although this has not
yet been invoked.

USA WOOD

Leicester Square sale

A SLICE of London’s
Leicester Square is up for
sale. Legal and General is
putting on the market a block
of properties, comprising
29,000 sq ft of floorspace
adjoining the Odeon Cinema
on the eastern side of the
Square.

Over £4.75m is being sought
for the properties, which
include several fast food
restaurants, a public bouse
and around 8,000 sq ft of
upper-floor office space.

The block is being sold with

. vacant possession -and Legal
and General, the ‘ freeholder
and Trusthouse Forte, the
leaseholder, will share in the
sale proceeds.

Weatherall Green and
Smith and D.,E. and-J. Levy,
joint .agents, say- the three
Interconnecting buildings at
17-21 Leicester Square and 19
Bear Street, would be ideal
as an entertainment complex.

The site' covering a quarter
of an acre offers “consider-
able development potential ”
says D. E. and J; Levy.

•■.Boskalis-Keys is steacEOy
building up Its development
portfolio in the retell field
and says it is seeking further
development opportunities in
the commercial and retail
sectors throughout the - UK.
Next week, the partnership is
topping out its £(L5m retail
scheme In Ipswich.

•Peter Taylor, the Industrial
agents, have just advised
Fraser Wood Properties tin
three deals; a letting, . a de-
velopment and an Invest-
ment.

Fraser Wood, in association
with Robin HID Investments,
-has bought a. 3.75-acre -free-
hold site on .the. Tonbridge
trading estate and is de-
veloping a 72£0tt sq ft build-
ing, pre-let to the Post Office
at an annual rent of £227,000.
Funding of -the 'scheme, ' In-
volving over £3m, has been

, arranged with Hamhro life
Property Fond Management,
advised, by Strutt and Parker.
... Peter Taylpr has also let
" - more space on Fraser Wood’s
'Greenwich industrial estate
, at rente over £2.85 a sq ft,
bringing total floorspace let
to over 150,000 sq ft The
ageni£ 'also advised Fraser
Wood Jn Ms acquisition of
Flymo - Nortett . Products 1
36,750 sq ft industrial build-
ing at Dormer Road, Thame-
Over £500,000 was paid for
. .the property, which has been
let to Kubota Tractors UK at
£704)00 a year.

• Legal and General has, fol-
' lowing the 1981 acquisition
of - various tenants* interests
at Bucklersbory House, City,
exchanged contracts with the
Bank of Montreal for lease of
. 79,500 sq Ft of hanking hall
and offices at a rent in excess
of £2m a year. Richard Ellis,
and Healey and Baker were

- lettingagents.

- • Rush and Tomkins have
joined Thanes Investment
and Securities and Beverly
Hills Savings and Loan Asso-
ciation In a series of property

.'development schemes with a
number of local developers
in the western states of the
UJS. Initially, the two British
companies have taken stakes
In four office, shopping and
industrial developments in
California and Arizona which,
on. completion, will .have a
value of over 835m. The
.schemes, carried out on a
limited partnership basis, will
he sold on completion.

“WE HAVE to accept,” says
Harry -rAiston, '-managing direc-
tor oTBrixton Esta-te . “Chat the
market has changed somewhat
and that our original hopes have,
been tailored accordingly.”

Mr Aston was commenting on
the appointment of a second
letting i -agent to find,

tenants for . 205. Holland Park
Road, .the 31.000 sq ft West
London' office block which Bris-
tol! Completed last year ..but
which stQl stands empty..

The" ' air-cooditioned. five-
storey building, fitted out to the
highest standards and occupying;
a prominent corner site bounded
by Holland Park -Avenue and
Holland Road,.. Kensington,
seems, to have most things in
its favour, apart from the reces-
sion. .

Last autumn, Knight Frank
and Rutley were appointed as
letting ;"a gents (Brixton. nor-
mally has tw o. 1 bu t apparently
succumbed to KFR’s ptea to go
it alone) and after an unsuccess-
ful search for a, single tenant,
Sinclair Goldsmith Jfaave been
brought in to help. ' :

Tie bur! ding is now available
in units from - 12,450' sq ft at
£13.50 a sq ft, implying that .

. Brixton is prepared to contem-
plate an annual rental yield of -
around £420,000 against the
original single-tenant asking
price of £470,000.

Brixton . has apparently
already turned away some pros-
pective tenants because they did
not fit the WH and now hopes
that the availability of separate
units -will soon lead to some
suitable tenants and- some wel-
come rental income.

PROPERTY SHAB^-ahiCssts
- have h£d * :

lately, with thefir. '-sector con-’
sphxtousiy fafliag to jpHi in the
spring* raHy in : the;- UK .eqUity-
market. Brokers W, 'XSreenweli

& Company -have .attacked.: the

hiatus

gent capital gains- liability
— which,, incidentally; also seems
to wi gtiMg H f - number of
potential - takeover bid
situations. • • • ' ;V.'. .-t *.s

Mike Laad lSemtri^es.V ’’ ;.T

„:Ih , flie foonet category

40 Miles

From Central London
90 , 000 SQ.FT.

Air Conditioned Office Building

115 Year Lease
For Sale

With Vacant Possession

Principals or AgentsWith
Named dents Only

Apply Box No. T5701, Financial Times, 10 Cannon Street,
London, EC4P 4BY

UabOity was an. issue' 'back in'
January, when .Rogehaugh
launched its unsuccessful , bid
for London Shop Property .
Trust; --Investors, were:;, -then
prompted to ask wtast tbsy-VreBT-
value vof ■ a property, share was,
particularly its break-up: value
net of GGT. ' . ;

• Since then, this yearis bndget
incorporated the first ' really
majors reform lathe 1 . current
CGT System,. which wasrlnfero-
duced 17 yearv vgo. TfepV pro-
posals there 1 ;were to adjust the
cost of assets ip ; ;capitel .gains .
■tax -(akada^onSyfor inflation,
applymg annuai movement in
the retail prices index. . 7-
In the past-two or three years,
property^ values have risen by
less that 'fflie Tate of retail' ptice
inflation. I£ that continued ; for ,
companies- with large existing
property ’ portfolios, ' the sufisgosr •
turn' is th5t those liable to bene-. -
fit most ■. frteri 'reduced- Itix.
liabilities would be compames
more consistently active in the
1970s : (and - thus subject to .'
higher base levels, of portfolio ;
cost)* rather \ than 'kmger-'
standing “Teve^onruy^ buys

Capital and Gotmttfies. . v ..

Looking . abends <J<3T .‘SAabflity-.
will - weigh- . 3«s beavjly
v <OTrent and JutiEre dev^.
merit ; sdiensesg-. since - .

Indexation wifi ^appiy «*>, ^
.total costs future develop:
meJEts; • .Ties factor spdBiMits 1 ''
companies with "large emtia®
developments -rind : probably *
development surpluses rrisft&e
to the'etirrentrnea: asset.base—
Fairvtew Estates, Greyco* {

; Estetesand Regional. '

-'Hifire inight ,\-afeo become
futmre.^toCk: market "hslea jge in ,
compames-^ahtHnfe ’dii a idefc
dascotmt to ^^ed net- wotSl
wHch ■ also have- '.a -.low -.CGT "

. liability— MEECi- BritiA- Lan^ ;
Town . _ and' XStty,*.'. Fairvlew l
jE&tate&and : Lotridrir-Sbop come <

■ into 'this category^ S ' i ’> l

^The unfoitunate^tiang about '
all thfcr Is .that v.roihe - of' th e -
:..compaffies.ebnc«arned bave ha^ 1
^dascmiBte^and -.^-CGT :^^ >
ties because of disasters. 1
Re«w>aal T f J, ^open^^es , ^-' ^ ■
liability stems from a Ct^niwea t
Road ; : property ; .bougbe -fby :
flteijand soki fiorfitfr 3B-1976, .
:/Jt. i§. a fact TJtewrty I
shares .afe 1 bou^ri and
, the ; awumed "quality :<Or tfi« |
management. J l Dy retere ; §aVe
long nremories, arid. the opkici. !
“dence.oF a hi^i dSscbunt id "
"stock market' arid low CXiT ■

■ liability-^ ■ is. ■ . bekmd^ tp --Vaise J
- queriaoxss .about ffidure?.mesag&- '

- ment performance. '• . ;• f : : ,

205 Holland Park Avenue
Kensington Wll

Air-conditioned Offices,

12,450 -31,300sq.ft.

North & South Circular

f| Knight Frank&Rqtky

*1: 2riHanover Square London W1RQAH
Rk Tete 255384

Wi 01-6298171

Charieferi Surveyors

3SV41 Queen Ame Street London WtMOAO

01-4866060 Tetax 28714

ajr- 1 VNtacM SbM. LMdwBmmBE
UXA4 118E9 Sam INwtHK fnnio& -

Substantial Freehold
Corner Block
in the heart of
London’s West End

FOR SALE

with vacant possession

Fv; —

AUCTION

MONDAY 19th JULY 1SI82 -3PM.

(unlossprovroxiEty soldi .

At the CONNAUGHT ROOMS
Great Queen Street, Kingsway WC2.

FREBiOLO & LONG LEASEHOLD
PROPERTY INVESTMENTS

.ijii

rv*

' * W" ' u> > 1

L E BLACKPOOL

3J1 saOueanSiraai
St ShopimatC700Dfia-
i • Rem revtew 1983

ERDINGTON.

349-251 High Sem

* ThneshopsandntalKinettuMat

• CIS. 650 pa

Rani reviews a reversions 198S. .
JOW Auctioneer;- FreOK. I Pepper &
- Sons. (021-643 9761)

LONDON W1

8 Old CamptonStreet
Shopletfltasoopia
Vacant Posseastoa 3 uopar floore
Rent review 1 984.

LONDON W2

ffl/34 Redon Race
Uflhtkiduswai let at £48.503 pa.
Revereloft* 1987
Jovri Auctioneers:- Drdn&VMght
(01-248 57S 9)

NORTHAMPTON

19*20 Alexandra Terrace.
HaAorough Road .
SupvmnrhQUat at £19250 pa.
Rani review 198Z

NEWCASTLE
UPON TYNE .

Newgate House. Me were Street
Suoenmarkei. Ol4i & 125.000 sq. H.
offlcoa Mat £162.498 pa
VakraMa Rert Reviews a Reversions
from 1883. "

Vacant possession 50.000 sq ft. offleep
Join: Auctioneer- SiruftS Parker
(01-6297282)

LONDON W5‘

i '8 Cutnvngion Parade.

Cedar Garage -
Eight shops and garage let
at £36.900 p a.

Rent review from 1983-

MAIDSTONE*

40TMmdgeRoBd
Offices lei at £l0.750ps.

Rent review 1983. I

"Join Auctioneers: Conway CoHett
(01-5192000).

ROMFORD >

1 K. 139 South Slrr,!. ' j

5f6Starioti Chambera
Three shops and offices let
at £20.000 p. a.

Renf review 1987

TIVERTON

30f32 Foie Street

Two shops let at £8500 pJ. .

Rem review 1 984. reverston l 98&

King & Co

Chartered Surveyors.

The following departments
are now at

70. Grosvenor Street,
London W1 .

INVESTMENT
DEVELOPMENT
OFFICE AGENCY

Telephone: 01 409 0676
Telex: 296360

C0MnpaU3AL ^ROPERTiES; '

Main-road premises dose to seafront
and Peashohn Park, ripe f or redeveltqHnent > -
Total area about 9,078 sq. ft." ’* TrTr! '

I Total Current Income Per £337,550 Annum

Details from

'£150,000 ' A*-"

TOWN CENTRE PREMISES ON PkffltftSm’

A modern building ha ving gt -, .1 i
total floor area of about 26,000 sq. ft VlC
Ideal for D.I.Y. retail /warehousing or. allied tradK'

BEST OFFER OVER £300,000

J. LUCAS GOODALL & SON. /

Estate Agents,' Vahiers, Auctioneers ‘f ;>

6 AJLREMARUS CRESCENT, SCARBOROUGH
' - ' Telephone (0723) 73456 - ; r?:

22 Chancery Lana LondwV WC2A1LT

01-4056944

Estate House, 130 Jermyn Street,
London SWl Y 4UL Telex: 267761

FREEHOLD INVESTMENTS

160 CHISWICK HIGH ROAD. W4— i ACRE SITE -
Development Opportunity
73 PONT STREET,. SWl— FOUR LARGE FLATS
Let Regulated Tenancies
115-127 GOLDERS GREEN ROAD. NW11
Unbroken Parade of seven Shop* and ten Flat* .

Also 87 ocher freehold and leasehold commercial investment
properties in London and the regions for sale by auction July 1st
(unless sold prior) - •

HARMAN HEALEY * ’CO
14 Roger Street, London WC1. 01.405 3581 ...

INVESTMENT/DEVELOPMENT

■OPPORTUNITY IN LITTLEHAMPTON, SUSSEX

PARTLY DEVELOPED FREEHOLD INDUSTRIAL- '

SITE AVAILABLE FOR PURCHASE '

^ Developed, aiid Lw: Appro*. 38JMO sq.. ft ' . .

. . Development Potential: Approx. ,111.000 sq. ft
For Derails: NORRIS BROTHERS. LTD,

Ricebrkfge House, Brighton Road, Bohtey, Sussex.

FOR SALE BY TENDER

PRESTIGE FREEHOLD OFFICE SITE
MILL STREET LUTON

detailed planning, consent for 23,500 sq. ft.
TENDER DATE 25th JUNE* 1982
KILROY COMMERCIAL : A‘ ;

50 ST LOYES STREET ... . *.

BEDFORD '

f0134) 50952 BBSS

A run

DISTRICT GQUPs^L

: : - BOG HQ$

FREEHOLD V

1 HECTAREi^aiO^

OUTLINE PUiyNJNG PERMFS^ON^f^R'-
LOW COST ^RESIDENTIAL UN^S^^V^:

* Techhtok Sawtow OtBeet-V* V'T c ; ?'

• C«Wrtc3 OHIc»V. UtB*f i»qm tn a vOt33 &Et---Ugyr- ^ * '

||§P

me:

|r Street

mi

}£ a rnus r niiay uuiits ix ±Jo4

Worldwide

Once a year JIW conducta
survey of the property
markets through their
41 offices around
the world.

The results are published in
an Annual Review.

; V

V- ' k -V

i+&i. * ?

s ' 4 - y.

>' --A-

The 1982 Edition
is available on
request to bona fide
redpients.Hease complete
the coupon below.

To: JLWPublications Department^KentHouseTdegraph Street
Mooigate,LondonEC2R7JL

Please send a copy oftheJLW International Property Review 1982 to:

Name Position

Fi rm j Type ofbusiness

Jones Lang . . .a worldwide property service.

'' Chartered Surveyors
International Real Estate Consultants
1C3 Mount Street. London W1Y6AS. Tel: 01-493 6040. Telex: 23858.

Kent House. Telegraot Street. Mou'gate London EC2R 7J!_TeLG1-S3S 6040.Te!ex: 835557.

MOM — INVESTMENTS — Plus rewr-
. shm at Inm pricer. Potreri Bar (77)
50202. ' “ .

JiaWiawWeal&itDtie.

24,750 Soft •

PEPPER ANGL 1 SS
GARWOOD

Clurt.T^J Survcuin, ; •

5/6 ( ados Place London \\ l Y 6LL
Telephone Ol-'i99 6.066-

Wright

S Si.Rnv^V'l”ia:c,LonaonjSV y .'i’lel;Oj 4934121

or Prestige Umces

To Lease Now
Ready December 1983

High Quality Specification

★ Full carpeting. * Gas fired central heating.

★ 3 compartment floor and skirting trunking.

★ Suspended ceilings with light fittings. .

★ Two 10 person passenger lifts.

-k 100 lbs per square foot floor loading.

★ Private car park. ■

Healey fr Baker

Uf S*. Owcg* SImmH, Honwvr Square.
iMdwwuuo M 4 »mi

.fefci tmvtilm* Ptapa^Lf Qvutp. p.

Richard Ellis

World Wide

GKQSVENORSQUHRE

ENTIRE OFFICE
BUILDING TO LET

5 ,OOOsq.fLapprox

* CARERRK3NS
* TELEPtfCNES&TEIJEX
# FUII.CENTR/|LHEAI1I9&

SOLE .SCENTS

KeithCktt^

mw Chartered Surveyors
Of 43 North Audley Street. London WIY 2AQ
W 01-6296804 Td«: 27839 '

S3

WALLINGT0N.

SURREY

setting new standards

TO LET !

58,900sq.ft. new offices

High quality specification f Easy access M23 M25Gatwick Airport
Adjacent to station ^ Private parking for 145 cars • 3 / ; vj'

''^A Gross

QIIFKtWXjD

SL_&Cfi J

01-493 4282

JonesLang

y==y-':y: Chartered Surveyors^

01-493 6040

RAYLEIGH, Essex

Prominent

INDUSTRIAL ; PREMISES
13,000 & 18,650 sq ft

Might divide

■feLOI.8348454

36

A Grosvenor Development 1

|}ELGRAVE MOUSE

NORTHAMPTON

A development by IDG Property Investrnents Limited

Rent

Rates

Service Change

£4- 50 persq.it.
£1-70 per sq.ft.
£1-16 per sq.ft.

TOTAL COST £736persq.ft

City of London Total Cost £43-00 per sq.ft.
West End Total Cost £31-50 per sqit

ONLY1 HOUR FROM LONDON AND BIRMINGHAM

39^145sq.ft. OFFICES

TO LET

UNITS FROM 9,825 sqft.

' joint::- 'Agents

Wilson & Partners

103 Mount Street
London W1Y6AS

sm

Chartered Surveyors’

01-4936040

-Spencer Parade. Sorthcmrpton
'■Telex: 3!.m- WilsmC:-'

LONDON W.l.

■- - i l ■

Prestige

air-conditioned
offices to let

23,500 sq.ft.— 50,800 sq.ft.

Viewing strictly by appointment through joint sole agents:—

Edward
Erdman

GOODMAN ' MANN

CHARTERED SURVEYORS ■ INVESTMENT CONSULTANTS SURVEYORS

31 St. James's Place, London SW1A 1NR 6 Grosvenor Street, London W1X 0AD

Telephone: 01-409 2484 Telephone: 01-629 8191

By Order of Champion Sparking Plugs Limited

LONDON AIRPORT

Land & Buildings

5.6 Acres

King&Co (jf

70. Grosvenor SC LondonW ■

LARGELY

01-4090676

FREEHOLD

" ;Thefe rittiose- w "^Wlocarion for our company- notm

Units from

11,750- 51,' 700sq.fi:

TOLET

Ready Now

£ Joint Agents

Lafig (^||) Goddard & Smith

* Chartered Surveyors

103 Mount Street _ ,

London W1Y 6AS 01*493 6040

22 King Street St James's
London SW1 Y6QZ
Telephone: 01-930 7321

EKM)...16mimites£rQmthe;’
City of London

New Air Condidoned Office Building
adjacent town centre and
British Rail station

A DEVELOPMENT BY SUN ALLIANCE INSURANCE GROUP

up to 55,760 sq.ft.
TO BE LET

Substantial potential savings in rent and rates
over comparable City of London offices

• Air conditioned • Carpeted throughout
3 automatic passenger lifts • % 80 private car parking spaces
• Suspended ceilings with fitted lighting
• Spacious prominent entrance hall

Jones Lang

103 Mount Street
London W1Y6AS

Chartered Surveyors
b 01-4936040

PEPPER ANGLISS
(STARWOOD

Chartered Surveyors

5/6 Cartas Place __

London W1Y6LL 01 “499 6066

betweenlJeajdii^Sy^jSdoiL, 7 1313,1 2 mnes frpm ** M4 motorway.

' . Well designed units, completely

the. rAshlTratifs ill Car diff . *• Set in an attractive Industrial Park

■ • \ ;) • \ JT. would work fnr u# -

■ £’• £ : i\ The investment growth in Cardiff

- ■ ' ' • ' j-V performs favourably with Uie other

• - locations we had in mind.

‘Avenge Compomul Annual Earul Growth rate, 1 !* '
EAt^mhratruL'waretiuMreau. onrljitten
jwn. iSnflrt Kin? 4: Ci l rctral urnyl

When we looked at the cash grants
" j available to us at Cardiff Industrial Park -
. • N , A • the figures locked so good we really

^$0 couldn't have made a better deaL

^Cardiff

o^vv Industrial Park

\\\\ ; Why don't you phone today and get

.j^jfcT^ydursdf in the picture.

- t#*-? Tony Hetdier. FI eidtcr Morgan.

'A-v ^Eljfin House Golate Cardiff. Tel. S96875
Tony Rowe. Wealhcrall Green & Smith-
?.* S3 Chancery Lane London TeL 01 405 6044

Financial Times Friday Jime . il'4982

G reater LondonHouse

Hampstead Road, London N.W41.

■ A- Sljoc^

★ 30.Car Park Spaces. /- :
,★ Ground Flo6r Offices.

★ Central Heating: '

★ Kitchen. ' // //Ay -£;•/'

★ Commissionaire-; —

" A Bairdroorh- . N:fy - ; N

★ ' Carpets.'.' y'y '

★ Telephone &iyejL G '

★ Security-

A (Je^opmeEt br L*:*xk>n £L Lbris ProptriK'S Liii,
m conjunction with the lyjcal Aattorities Mutual Invest rrKT.t Trust

New high quality office
building in prime

location

8,600sq.ft.

6 Parking for 27eais 6 Lift • Central Healing

SINCLAIR GOLDSMITH

• Chartered Surveyors

3S-'4T 0ii9?n flnnt Street LoRdoa fflf.t OAD

G1-4U6 6060 Telex 28714

Hampton & Sons SAMPSON

6 ARLINGTON STREET "

LONDON SW1A 1R8 .
Telephone: 0.1-493 S222
Telex. 25341

1 ’j •» •• y - ,v.r\ - ;

-‘er'e-Ci- e A j" :? v

T^C^rDSm 1 .

27/29 FITZROY ST. W1

3,918sqft

Offices including Residential

374 EUSTON RD. I\IW1

6,693 sq ft

Prominent Showrooms

Gooch

Wagstaff

CHbrt*r©ri SuryrryOfT;

01-6298814

4 Albemarle St-
Londorr W1X 3HF
Telex 8811824

A'.nsreidam - F. r

TO LET

SOUTH WAfiWCKSHIRE

Recently built 80,000 sq. ft- warehouse uiut, Wellesbourne,
Warwick. Gonyemently situated for , access to the Midland-.

System, and within" four ralLes of the propo^i M40
Oxford to Birmingham' motorway. The buHdfng is fully healed.-
ana insulated and a large amount of, hard standing is available. .

Apply. B. N..Tonng’-' - . •"■ -• •

* , c*yE LEASING LIMITED V -

Simplex Works. Roade, Njorthampton NN7 2!tG ' /
Telephone 0604 862441 " • ' , •

On instructions^ from Carrington Viyelh pJ-C.1

TAD CASTE R-^37,000 SQ. FTi r

SUPERB MODHtN ENGINEERED TROUSER
FACTORY FREEHOLD N- ' : '"t.--

Purpose bulti approslimraty fryssr* tg» .' - ,,

_ . , F ° R SALE AS/ A GOINS CONCERN ' .' £. r ■■ £- -

wtth about 1*0 akrttad •mpiorytliss «ntf mod e m Hptftrwn Vih* Pwtf
trouser making «aurpmclnt . ' l-
■ OFFEfiS Afi£ INVITECr .

RA FFETY

BUCKI-ANTi

Commercial

“» blagRaye . st£

READEyG,. . . - f
BERKS.-';

TEL: 0734 ■ j

Financial Tirafes Friday - June ll 1952

Ideal : Storage distribution. Industrial or development '

FULL DETAILS- ...

Pj. williams* co;

. 6 Stratton Street, Piccadilly, Wl.

.. , .01-493 4164.

ynei

: °mpl s

; q.ft

Anew office development of

21,000sqfft

FOR IMMEDIATE OCCURHTION

AIR CONDITIONED

WITH CAR PARKING

Green & Smith

ZZChancaryLane London WGJAVJ

fF

II

i

01-4056944 01-4914120

*" fiOMogMl-StreeLLoadoaWtYSRE.

A DEVEUPPMEMT BY » ODA'./rP ACT ^ i

Humberts

CEDAR HOUSE:

NEW OFFICES ON 4 FLOORS

Available December 1982.,

Heathrow: 20 minutes,
sf* M3: 5 minutes. -

* 44 private parking places.

$ Ample public parking adjacent
3s Prominent position.

# Highest specification and finfeh.

Pearson

Williams SI . ^TtE BUSINESS BUILDBfc

Sentry House, 110 FVimleyRoad, Camberiey GU15 2QN. Telephone:(0276) 66223.

FOR SALE BY TENDER

INDDSIRIAL/WAREHODSE UNO ‘v-
CHILWELL NOTTINGHAM
AREA 9.81 ACRES .

VACANT POSSESSION
FREEHOLD

WALKER WALTON HANSON

Chartered Surveyors and Auctioneers

■01 iS2 192S J5P:..r Svr-! ,;<sr • vA : 3?c ■ 76'r3:

:0oC2 : 54,27.2 H r .n' Ij v i*.-i evr.-:r S.-:» ‘iszn-njr.. 7* — 27i: 5'
VsihV.Sc .Sens.- Mr:;- =-< &'-<u u- ; ,

CORK ST., MAYFAIR — Attractive. Office*
to let. 260 SO. ft.. Lirt. C.H. • Apply
Whitt Drue* A Brown. 01-558 St 81 .

CUT OUT THE BUN ABOUND-.
AND MAKE YOUR NAME HERE-

Avoid flin •finafir flino n of loolriag high andXdwfbrb Psjnefls pr emis e s
or building land* ^

YouTl find what you want here... Instant factories and warehouses.
Instant Offices xral h iiwnftM jirnpAHiBg And h Trilding sites available for
immediate development.

AU in just the right place: Southampton ^

And in the pages of our two free property guides.

This is an ideal situation for you to go to work with excellent
communication links, labour resources and service industries to support
and help your business thrive around a major port.

Giridestostrat^cally--located premises for busmen
Please send me a copy of yonr Ckman e rcial P rop e rty R e g ister Q
Your Development land Register - 'Q

TickBax,

Company
Address -

Industrial Development Officer, City Valuers Dept, Civic Centre,
Southampton. Tel: (0703) 23855 Ext 587.

SOUTHAMPTON

THE IDEAL BUSINESS CENTRE

r 3,500sq.ft approx. >

Self -rantained, refurbished
Office Building

SLOUGH

Superb Offices to let

. . , ‘ ’• . K

> 2,330/5,080 sq. ft

ready for immediate occupation

Chamberlain & Willows

Estate Agents ■ Survey ore • Valuers ■ Tfel: 01-606 9611
BMdQgc>;CfawfcHwe. hWMi i nMr<nf . lnnifci BBC2VgEU. mac 29M61
MwMP i i i till Hi c—i n r iMiiaiim-ntr in innimi

II I Si rViV.W

London Wl

CONWAY

STANTON

RELF I St Quint in

U,; d . £ vo«-. ! Is -V.* '

Do' i*r StijN.1 London ATN 3 Rl>
Tvl : 0iA91 ££>3;*. Te:ev

Hertfordshire . '. Si acres

Watford d mOes - St Albainsh- miles - London- 2D fnUas
A valuable development site with planning consent for the
conversion of existing "farm -baildmgs to residential and
restaurant user.

: Aitr*ct!va. Farmhouse wWi 3 recaption' rooms, B bedrooms..

Pair of thatch ad cottages; Main tWo.sturay dairy building. .

nth* Jiam-Traifitk>naFf«iVihu Wings. 1

fior Sale Freehold pfHfr about 5£ acres.

Details: 5 Homeland Hl^St Albans ,>V Tel: (0727). 51739

.. . ■\~(O5/20B3/SFNH)

LONDON, SWI

: Modem (1960*5) Block of 8 Flats

-Occupying a quiet and attractive position between Buckingham
Palace and Westminster and comprising: * • •

. 7 JFIats each 2 beds., double rec., etc. (approx. 900 sq ft)

1 Rat of 1 bed., etc (approx. 475 sq ft)

with Lift, oil-fired CH and CHW, paved garden
For Sale as a whole, fully vacant —

Leasehold 125 years — Price £550,000

Writ* Jtox 757DS. Ffawdbf Tunes, JO Cngpoti.Stecpt, London EC4P fBY

NOTTINGHAMSHIRE

Modern (1959) Single Storey

Engineering Factory

FREEHOLD

122,186 Square Feet
7.1 Acres

Would divide easily for letting

ROBERT CLARKE, Chartered Surveyors,

Oxford Street, Nottingham NGI 5BN.

Tel: 0602 46236

KENSINGTON CHURCH STREET W 8
REFURBISHED OFFICES

6,400 SQ FT

TO LET

JOHN I ) WOOD

23 BERKELEY SQUARE
LONDON W1X 6AL

014129 9050:

(Ref. CNCB)

John Foord ! Co

61 QUEEN’S GARDENS
LONDON W2 3 AH
• 01403 8366
(Ref: NDP)

VICTORIA SWI

To be Let

16,000 sq. ft. air conditioned offices

Lift, carpets, partitions, telephones, telex,
car parking

Chartered Surveyors

01-734 8155

AIINANaAl/riMKSSlRVEY

PROPERTY

MONDAY 28th JUNE 1982

The Financial Times proposes to publish a Survey on ILK* Property, The
• foQowmgjto^cs will be^Bscussed.

- L; Introduction ;.

. . Tfte ccgniggrcial property market has become
more dtfll.fliiriag tie past 12 months. Rental per-
iormsnee m many areas has been -flat .Economic
recession hds affected tenan t demand and lettings
have bra .Harder to ■ achieve. Nevertheless, the
underlying demand- from major 'institutions - for
prime property investments remains .strong;

. .institutions bave become more selective'' however,

' ■ about the schemes they are prepared to take on.

.\J5. . "inyestmeiit

. J>rzme . property.; yf elds have so far shown little

- Inclination to rise, despite the higher rates , of
return: available on gilts and .other? forms of

.. investment ‘Secondary property yields have been

- -under greater pressure. Some analysts are begto-
■'nJug to question whether the widening of -altenia-

tfve investment options will reduce the relative

attractiveness^ of commensal property.

3. Priq>erty shares \

'The Financial Times. property share index peaked
at the' beginning of April 1981 Twelve months
later it had fallen by 14 per cent relative to the
FT elldthsre index. The equity- market has been
v under greater pressure- than has. direct investment
.property. By spring? this year the average discount .
of property shares 'to net assct valufes had risen
to , around SO per cent, compared with just over
f per eenta year earlier.

' 4,- Offices" ?:

Th'a overall downturn, in -the market, has led to
the- widening of the gap between the .demand
toe ‘ top quality buildings on . prime sites and
premises in less favourable locations. Increased
automation of offices ' and new ..developments in
the' field of electronic com mu n i c at i on s may upset
traditional supply and' demand patterns. Regional
articles elsewhere in the survey will look at the
performance and . prospects- of .individual office
markets. : ■ - -

. 5. Retail.

Looks at: ! --

(aj The' overall performance o£* the market place
during the past 12 months, and the trend for
individual retailers to capitalise oh the rising
value of their property assets.

. (b> The special problems facing .Oxford Street
in London; one of Eunve’s premier shopping
streets.

(c) Retail 'development The scqpe-for more town
centre development . ^ . : .v j.

6. Industrial

The industrial sector of the economy has been
worst affected by lie recession. In many parts of
the country there are too few tenants charing too
many properties. Lettings axe often difficult to
achieve; landlords' are offering special deals to
persuade tenants to take space. The industrial
section of the survey will also look at

(a) The spread of the nursery factory units and
the impact of 100 per cent building allowances
on this market

(b) The performance of enterprise zones and the
effect these are having on property values.

7. Incentives

This part of the survey, will look at the various
grants and Incentives aimed at encouraging new
development These are provided. by a variety of
bodies fnpimimg - central ■ government, local
authorities and other development agencies.
Reference will be: made to enterprise zones and
industrial building allowances although the impact
of these will be covered in more detail elsewhere
in the survey. Extra artides may he provided on:

(a) Special efforts to help the toner cities.

(b) Progress made by the two new development
corporations' established' to mastermind the
regeneration of former docklands in London
and . on, Merseyside.

INTERNATIONAL PR OPERTY

R>r Sale b/Kaxler

Under instructions from

Atthefinaiiei:il

550 Bomte Street,
Mdboume;

Shelf, BHP, National Bank, and
many other important business names
are ril dose neighbours pf 550 Bourke
Street, one of Australia’s most '
important addresses. '

Previously the home of
Australia’s most powerful 1
conglomerate,. 550 Bourke Street .
provides accommodation for the most
fastidious commercial tenants.

There are 12 office levels
providing 6970m 2 of air conditioned
accommodation. There'S basement cair
parking for 56 cars and a fuHy-
equipped staff cafeteria.

There’salso great potential for

development in a market that requires
100,000m 2 of new office space every
year.

For a comprehensive brochure
and details of tender please contact the
sole agents, Richard Ellis Pty. Ltd.,

60 Collins Street, Melbourne, Victoria,
3000. Udepbone (+ 613) 654 3333.

landers close Jnly I&Il, 1982

Richard Elis]

R iri widEBbPfr. LuL*
WCWBnsaittl, Mdtoan*. Vicub. 3 ML
Pkane ^61316543333 ' “

8. Local authority rates

These, have become an Increasing burden In
recent years. The impact of rates an property,
demand and supply.

9, The Snrvey wDl also carry a series of 10

Articles 'analysing lie performance of different
aspects of -property -investments and development
in various regional -markets.'

(a) City of London office market

(b) South East pr o pert y •

(c) West Midlands

(d) Northwest.

(e) North East

(f) Soda West

(g) Wales

(h) Scotland

(i) Northern Ireland

(j) Republic :of Ireland. ^ .

> . # For further inf onnation and advertising details contact:

Tim KTngham 011 01-248 K769

EDMANOALUMK

EUROPE'S BUSINESS NEWSFftPER .

The content, and publication dates of Surveys in the Finan cial T im es.
' are^iject to diaage at the discretion of the Editor.

. Office of the Notary Gerald
SNYERS d’ATTENHOVEN Av. Louise,
131A— B.1050 Brussels — Tel. 538.94.90
On Tuesday, June 29, 1982, at 10.30 am
In the Court of Justice Of Saint Josse ten Noode
29 rue du Mfe ri da e o, public auction sale of:

THE PALACE HOTEL

BRUSSELS

(BorooglL of Saint Josse ten Noode)

22 Place Rogter, cad. sec. A-n°- U9/B/5 covering
an area of 28- a 60 ea

Commercial Property of exceptional value. 7 floors used as
Hotel de Luxe with 380 bedrooms, cafeteria, bar,
restaurant, lounges, kitchen, a rimHi tu n tH y a- anw 'service
offices. Independent commercial' premises cm the ground-
floor and basement Large telephone exchange (1971).

Equalized “ Revenu Cadastral FE9^06,500. —

. Vacant possession at time of payment
Information and visits:

Office of the Notary at above address

TEXAS RANCH

7,769-ACRE IRRIGATED
PROPERTY. NORTHEAST OF
McALLEN.

Good caRla facilities. Can be
developed lor citrus, vegetables
-and cane. Soma mineral rights.
$9.5 million

Price quoted on net-to-seller basis

Contact: L. K. Andorf
CONTINENTAL BANK
30N. La Satie. Chicago, II 60693
USA - {312} 828-6832
Monday-Friday 9 am to 4 pm

VIRGINIA

USA

ff. an y . Europeans have bought
Virginia farms and estates for
investment and future homes.
Gracious country living in world
renowned eras, rich with tradition,
natural beauty.

MIUSIDE: 139 A. (55.25 H.A.)
working crop and grazing farm,
restored frame home, cottage,

S32L00D 1 W,8W5 ‘ riwer frontage.

GUILFORD: 242 A. (97.34 HJ\.)
norae/cattle farm, large manor
home, pool, pond, beautiful moun-
tain viawa. $495,000.

BEN LOMOND: 6S3 A. (27B.41 HA.)
retreat, largest private lake in

hoirm'Viasra 00 ^ lOW<ly manor

MOUNT ARMOUR: 520 A. (210.44
H.A.) (arming estate, brick manor
home, pool, guaat houses, magnifi-
cent mountain views. $1,200,000 or
$795,000 w/250 A. (101.17 H.A.).
ME CHUNK CREEK: 510 A. (206.39
H.A.) horae/cattls fanning estate,
located In prime hunt country. Large
manor home, excellent facilities,
20 A. lake, beautiful setting.
$1,750,000.

For brochures, complete Information
on Virginia farms and a stains,
quality agricultural properties .
contact

Faulconer

RUtM. ESTATE AND RESIDENTIAL BROKERS

UK EAST HIGH STREET
. CJtAKLOTTESVILLE. VIRGINIA 23901
OSJL

COSTA DEL S0L-
EXHIBITI0N

You aie cardailv mvn ad id pn us at one
of our tonhcomiiq edabnuws of Ena
MARBEUA properties wtiare we have
the latest prices avaitatuUTv. and the
mast up to data Ml colour photographs,
stales and mdeo him.

FOR 5ALE ON UNSPOILT
GREEK ISLAND
60,000 sq m. of Building Land
Situated on a gradual slope facing
the tea. Vary dose to harbour,
with fun planning permission for
hotel and bungalows.

Price £1,250,000

For details Telephone anytime
048436746

S33-3

SWISS COTTAGE

"Hairs 17th June 5pm-9pm
HOLIDAY INN

LONDON HEATHROW

Fri 18th Juno Spm^pm
HOLIDAY INN Jimc 4 oR U4.
Far hirrher deuis and mlnnr
brochure (dean phone:
ft»Wo Prapanies. Park Utet

UmdM W22QZ

01-402 2113

FOR SALE
HONOLULU

NYSE Co: Disposing of Assets

Income-producing properties. Fee
Simple. 15,000-148.000 Sq. Ft.
Pteatigious KapWsrt Btvd. Sites.
Acfacsnt to 50- Acre Ala Moana
Shopping CeriW. Devetopment
Potential— Zoned Offica^HetaS.
Avaflable Immedtetely.

Me. A- D. Friedlander
MONROE & FFBEDLANDER, WC.

Cuuan a ra h l A kabiartal Barf Eatraa

Honafeen • hsmi • esns
(HR 5BM886 • Tt*C (72^9677

FORECLOSED PROPERTIES
ALBERTA, CANADA

A major Western Canadian
Trust Company has several
income producing and develop-
ment properties for sale,
acquired’ through foreclosure .
< actions.

"Many below appraised value"
Contact: G. K. McFadyen
' Project Mgr,, Real. Estate
NORTH .WEST TRUST COMPANY:

, *10201 -Jasper Ave„ Edmonton
Alberta. Canada T5S 3R3
Phone: (403) 420-6071

695 ACRES TIMBERLAND
SOUTHERN VERMONT

With estimated St 72. OOO . tiratw
value. High nualltv stocking. Immed-
iate cash flow. Vary sound forest In-
vestment. 5230,000.

Bos. Telex 94D-SZG 6t7/72S-18aD
14 Kilby St Boston, MM. 07109

GREECE — HYDRA ISLAND. For the rWi
only. • Very expensive entases for
•elected few. Fantastic sha. Bok 1216.
0 8706 Hacbbera, W. Germany.

II.S.A.INVESTMENTS

Washington DC — International
fatlllding. a fully let central Office/
Shop proparty, latest equipment, a
tacura prime holding for 57m.
Atlanta — shopping centre with
a goad mix of tenants located in
ratMjjjy^expandlnfl county. Price:

Terms and financing deals
available, contact:

WHITEHEADS
INTERNATIONAL
154 London Road. North End
Portsmouth, Hants
Tel: Portsmouth (0705) 80811

I

38

Companies and Markets

WORLD STOCK MARKERS

1 Fkanci^.T^es

NEW YORK

June June
9 8

ACF industries... 31%

AMF 16 •

AM I Itn J l %

ARA ' 28%

ASA„ J 30%

AVX Corp..™ t 14

Abbot Labs. ! 28%

AcmeCJeve_.....j 1?
Adobe Oil A Gas] 17
Advanced Micro.| 22%
Aetna Life A Gaaj 34%
Ahmanson (H.F.)> 8%

Air Prod *Chem 2B%

Akzona J 14

Albany Int ..I 24%

Alberto-Culv I 11

Albertson's ‘ 29%

AlcanAlumlnium' 16%
Alco standard,... 20%
Alexander A At.. B4%
A. eg harry 261a

A lied Corp 32

Allied Stores ...... 28Sa

Allls-Chalmers,... 12%
Alpha PorM | 11%

I Columbia Gu 30: a

Columbia Plct—. 1 71%

Combined Int* 19 s *
Combuotn. Eng .J 25 lg
Cmwlth. Edison. 1 22
Comm. Satelite^ 4954

Comp. Science™!
Gone Mills j

Cons Edison ......I

Cons. Food*. .....

Cons Freight... _.

Con. Nat. Gas

Conmuer Power
Cant. Air Lines...

Conti. Corp

Conti. Group

Can til lion it.......

Conti. Telep '

Control Data ]

Alcoa.

Amal. Sugar.

Amax. —

Amdahl Corp

Amerada Hats....

Am. Airlines

Am. Brands I

Am. Broadcast 1 *;

Am. Can

Am. CyanamFd....
Am. Elect. Powr.j

Am. Express

Am. Gen. Insnco. 1
Am. Hoist A Dk.„!
Am. Home Prod..;
Am. Hosp. Suppy
Am. Medical Inti [

Am. Motors I

Am. Nat Reaces.'

Am. Petflna.

Am. Quasar Pct..[

Am. Standard....!

Am. Stores. J

Am.Tal.ATel j

Ameteklnc ..

Amfac —

AMP !

Amstar

Amstead Inds-...
Anchor Hookg....
Anheuser-Bh —...|
Archer Daniels...
Armeo

223* t 23
4B% | 42
20Bs » 2H4
191 b I 1988
21 >8 • 219b
IGTb 17
3914 ■ 391b
359b 3518

276s • 27 Bb
267b 27 Sb

16% 1 267a
41 14 ' 411b
37% 3 8%

129b , 127a
2598 ■ 36
401b 4Dis
IBSb 193b
3 >8 3%

30 3012

B87g 68 Sg
858 i 89a

Cooper Inds... ..J
Coors Adolph....!

Copperweld J

Corning Glass ...I
Corroon Black...., 1
Cox Broancaafg.

Crane :

Crocker Nat |

Crown Cork

Crown Zell.. J

Cummins Eng ...|
Curtiss- Wright...

Damon j

Dana •

Dart A Kraft..™.i

Data Gen ..1

Dayton-Hudson .«

Deere. I

Delta Air

Denny's. J

2B : 28
10lB I 109 b
14 j 1514
447a 1 44b 8

2014 ' S 0 %

26% 27

227 S 1 227 B
268« : 26
235] , 2334
187g , 187 b
32la 32 >s
41 ! 411a

7 ' 7ia

2S7 8 ! 263e
61 i a • 6 H 11
235b , 25«8
S47b 1 35
259s 1 2512
31U , 32%
24 It 2314

SohHtz Brsw.._.

Sdhlumbergar— ■

SOM .

Scott Paper

Seacon ,

Seagram..._

Sealed Power _

Searie(GD) ..

Sears Roebuck™

Security Pac. ,

Sedco

Shell Oil—

Shell Trana

Sherwf n-Wma _

Signal

31 g node

■ iS T S 16?s

■■ 388b 39 la
- 22*4 28*8

■ i55*' 14s *

. 835* JJI,

. 47 % 4aa«

. 29 V 8914
.331s 33 14

. 183* late
. 3014 30%

. 291* 29%
. 38% 38%
. 29%. 30%
. 81% 28%
. 167 a 16%

. 48% 48%

27% 27%

I 64% !

! 53%

j 20%

21%

over

Uni |

rmel

spite

useh

ustor

dson

Geo.V

Corp....j

oidlntL..’

Inds

Bay Mng. 1

ArmstrongCK...

AsameraOII.......

Altf TCP. ________

Ashland 6ii

Asad. D. Goods...

Atlantic Rich

Auto- Data Prg...

AvcO

Avery Inti

.. 1B3b 155*
. 7% 7%

... 19 I 19>4
.. 837a 1 239*

. 32 | 32%

. 41% I 41%
, 237 8 j 24%
. 15% : 15%
. 24% | 24%

Dentsplylntl 1 23%

Detroit Edison....; 12

Diamond Int] 3B

Diamond Shank.. 18 %

DJ Giorgio 1 9 ;

Digital Equip..™ 1 699a

Dillingham 10%

DIUon «... 21%

Disney fWaitl ; 53%

Dome Mlnes......| 8%

Donnelly (RRj 40

Dover Corp : 21%

Dow Chemical ...' 21%

Dow Jones 397 b

Dresser... 18%

Dr. Pepper. 12%

Duka Power 21%

Dun A Brad 66%

Du Pont.. 32

EG AG. 17% :

h1t>

Slmpflofty Part... I 7 t 8

Singer 1 11 %

Skyline, • ■ 13 %

Smith Inti | 2 «%'

Smith Kline Beck' 66 %

Soneetalntl ™.j 10

Sony. J 13

Southeast Ban kg 1 143*
Sth. Cat Edison J 31%.
Southern Co..„.J 12 %
Sthn. Nat. Rea._J 24%
Sthn. N. Ertg.TelJ 43%

Sthn. Pacific [ 29%

Southlands 29% i

S.W. Bsnesh&res! 22%

Sperry Corp. .■ 23

Spring Wills.. ;■ 26%

Square D j 26%

Squibb □ 36%'

STD Brands Paint! 23%

Std Oil ClifomlaJ 32%

Std Oil Indiana 44%

Std Oil Ohio. 37%

Stanley Wks. 13%

Stauffer Chem..!| 18%

Sterling Drug 20%

Stavens (J.P.) 14%

Avnet

Avon Prod

Baker Inti

Balt Gas A El

Ban Cal

Bangor Punta ...
B?.nK America ...
Bank of M.Y. .
Bankers Tst N.y.
Esrrv Wright . .
Bausch « Lomb.
Ba>rt Trav Lab. .
Enwrica Foods .

inds

Be ■ Howell .
Fe industries...

Benoit

Beneficial

Be Mi Steel

Bi ■» Thee inds

B*'C: - Leaser..
Bice' 1"

5 <■ Vi'

Be? 1

Boi?** ■ • '.’ie. .
Br-«r

Bo: - »i ...

Bra

1 44 I 44%
22 i 22%
24 23%

26% 26
21 % 21 %
16% 16%
16% 16%
36% 367 S

28% 27%

15% 15%

41 1 41%

33 33%

18% 189*

5% 5%

19% 19%

16 I 16
47% . 47%
17% 17%

Easoa ....:

Eastern Airlines. 1
Eastern Gas A F.‘
Eastman Kodak..

Eaton. !

Echlln Mfg

Eckherd Jack

Electronic Data.
Elect Memories. 1

El Paso [

Emerson Elect..
Emery Air Fgt...

Em hart I

Engelhard Corp..;

177a ' 18%
6% 1 5%
18% : 18%
69% 70%

28% 28%
12 % : 12 %
177 3 I 18%
27% 27%

3% , 3%

19% 19%

43% . 43%
7% 7%

337 a ! 34
21% J 22%

Brunswick .. ..!.

Euc/rus-Erln ...
Burlington Ind ...
Burlington Nrthn

Burnd.

Burroughs. .

CBI I rid 1

CBS

CPC Inti

CSX

Campbell Red L,
Campbell Soup...
Campbell Tsgg ..
Canal Randolph.,

Can. Pacific

Carlisle Corp [

Carnation 1

Carp Tech

Carter Hawley.. •

Caterpillar

Ceianese Coro...

Cerrtel

Centex

Central A Sw I

Central Soya j

Certain teed

Cessna Aircraft.!
Champ Home Bid

C ha n»n int

Chamn Sp Plug..
Charter Co .

Chase Manhatt'n

Chemical NY !

Chessls Pond !

Chicago Pneum..

Chrysler j

Chubb |

Cigna

Cincinnati Mil ....

Clticorc • ,

Cities Service

tli/ Invest ; 1

Clarn Equipment
Clave '"llffs Iren.- .

Clorox

Clueltl Peaby ....

Coca tola j

Colgate Palm

Collins Alkman...
Ccltlndi | S

17 1 17%

18% I 18%

13 ; 13 %

29 I 29
22% : 22%
16% 1 16%
22% [ 24%
32% 32%

24 24%

% ‘ %
247a 24%

54 63%

22% 22%
13% , 13%
56 ! 36%

51 32

137a . 139*
29% 1 30%
18% I 181a

13% 13%

20% - 207b
42% • 44
17% 17%

52% 32%

33% 1 33i,
36% 36%

35% 35%

39% 1 39%
10 % ; 10 %
33% ; 34%
23 | 23%

34% 1 34%
20% 20%
22 % 22 %
307 b 31

33% 34

Ensereh™ I 17% -I 18%

Esmark ! 457 ( 1 46%

Ethyl __i 18% * 187a

Evans Prod J 9% ! 9 %

Ex Cello ! 22% 22

Exxon™ ! 277 b 27%

I FMC- I 23% : 239*

Faberge— • 14% ' 135 *

Fedders 3% : 3%

Federal Co. 22% 22%

Federal-Mogul.... 20% ' 20%
Fed. Nat Mort,... 9% 9%

Fed. Paper Brel... 19% 19%

Fed. Resources..! 0% 09*

Fed. Dep. Stores' 40% • 41%
Flelderest Ml..... 21% 211 b

Firestone.™ 11% . 107s

1st Bank System. 29 29%

1st Charter Fin.. 9% j 9%

1st Chicago......! 14%

1st City BankTdx, 24%
1st Interstate.™? 27
1st Mississippi.-. 9
1st Nat Boston.... 23%

1st Penn 1 3%

Fisons- I 6%

Fleetwood Ent...' 15

Flexl-van.. I 16%

Florida PwrAL- 32

Ford Motor 21%

Foremost Mck.... 29%
Foster Wheeler.. 10%
Freeport McM....| 15%

i"**

GATX... 25

Gannet

Gelco

Gen Am Invest ..

Gen Cinema

Gen Dynamics .,
Gen Electric ..._

Gen Foods

Gen Instrument

Gen Mills

Gen Motors

Gen Pub UtHttie

Gen Signal

Gen Telep Bee..

Gen Tire

Genasco

Genuine Parts...

Georgia Pac

Geosouree.

Gerbes Prod

Getty Oil

Glddans Lewis... .

Gillette

Global Marine.

Goodrich iBFu...
Goodyear Tire,...

Gould

Grace.

Grainger iW.W)...

27% ' 277b
20% : 19%
69% 1 59%

Stokely VanK.J 28

Storage Tech 21%

Sun Co. l 35

Sundstrand 26

Superior Oil J 27%

Super Val Strs... 15% >

TRW ! 48% :

Taft 28 Tg l

Tampax ; 32% .

Tandy 1 27%

Teledyne '100%.

Tektronix 4 48%

Term eoo 25

Teea ra Pet.-™ 16%

Texaco 28%

Texas Comm. Bk. 32% -
Texas Eastern .. 467 b
T exas Gas Tm. 24
Texas Instrim'ts 77%
Texas Oil 4 Ga* .a. 28%
Texas Utilities .. 22%

Textron 18%

Thomas Betts _. 45

Tidewater 20% .

Tiger Inti™, '■ 7%

Time Inc [ 28%

Times Mirror ^8% j

I Timken -

' Tipperary..

Tonka...

| Total Pet

Trane.

Transamerloa...

: Transway.

Trans-Worid

Travellers.™.

I Trfoentrol ...

^ *11

FT'-iwnr JSiTiTJl ■ ('T:-TR

The i
moderat

maixet feu ratreai
e activity in the wafo

in

soC

the ove

might "WalF IStreet .V

set-

Trl Continental.
Triton Energy..

Tylor

UAL

UMC Inds

Unilever N.V;...

Union Camp

Union Carbide..

.] 18% 18%
J 14 14%

! 12% 13%

i 17% 17%

.: 7% 7%

J 64% 54%

. 43 43%

419* 43

Roper Corp

MoDermottlJR).; 19% I 20 %

McDonalds 67% ] 67%

McDonnell Doug 34% 34%

McG raw Edison..- 26% 26%

McGraw-Hill 49%

McLean Trukg ...: 12% j

Me

Ma

lion N
Iville

Ms

Ma

rck ..
redlth

Union 0(1 Cal ;

Union Pacific....

Uniroyal

Uirtd. Brands i

Urrt. Energy Res.'

US Fidelity G

US Gypsum J

US Home I

us inds 1

US Shoe. I

us steel ™„.!.

US Surgioa1._.... :

US Tobacco. !

US Trust. '

Utd. Technoigs
Utd. Telecomms.

Upjohn

VF.. ;

Vari an Assoc*. .
Vernltron... j

Virginia EP ^

Vulcan Malris...
Walker (Hi Res...
Wal-Mart Stores,

Warnaco 1

Warner Com ms.
Warn o r- Lam bt...
Washington Post

Waste Man gt

Weis Mkts.

Wells Fargo

W. Point Poppl.™
Western Airlines
, Wostn. Nth.Amr.
13% | 13% WdstfnghouM....

Westvace

Weyerhaeuser...

Vvheelobratr F...I
Wheeling Pitts. J

Whirlpool j

White Consoltd.f

Whittaker !

Wlckes.

Williams Co.

Winn-Dixie Str

Winnebago

Wise Elec Power

Woolworth

Wrtgley i

Xerox J

Yellow Frt Sya ■

Zapata.. „,l

Zenith Radio

36% 36%

35% 35%

73* 8

9 9%

30% 32

387s 38%

26 26%
llT a 11%
10 % ' 10
32% j 31%
80r a - Al%
21 ! 21 %
43% I 43%
34% j 35%
35% 35

18% < 18%
41% ! 41
43% I 43 7g
34% ! 34%
9% ,*• 9%

Agnlco Eagle
Alban Alumln
Algoma Steel

Asbestos.

Bk Montroa I.

Bk Nova Scotia.

Basic Resou

S ell Canada 19% ■ 20

ow Valley., 14 % ; 14%

BP Canada..™.. 26 26%

Brascan A 16% 16%

Brinco 3.40 I 3.35

B: C. Forest.. J 8 ' 8

CIL Inc 21% | 21%

CadillacFairvtewj 7 j 7%

Can Cement ' 9% 1 9%

Can NW. Lands ..J 20%v.[ 21

Con Packers. » 30%- • 30%

Can TrUsca „| 33 1 23 -

Can Imp Sank....' 19% 20

Ctfrr Pacific ; 20% [ 26%

; Can-P. Ent. ! 137® i 137b

Can Tire 34% , 34%

Chieftain ; 18% I 18%

Comlnoo 34% ' 34%

Cons Batbat A. ..4 14 . ' 14%
Cont. Bk. Canada 1 6 t 8 ; 6%
Coseka Res....™.., 4.45 4.50

Costain 6% 6%

DaonDevei ■ 2.70 , 2.90

Denison Mines,... 19% I 197a

Dome Minas. ' 10% I II

Dome Petroleum; 6% | 6%

Dom Foundries.! 30% 31%

Dom Stores. 15% 15%

Domtar. 16% 16%

Falcon NickJa 44 45

Genstar 12% 13

Gt West Life..... 200 200

Gulf Canada...... 13% 13%

Gulf Stream Res. 2.16 2.48

Hawk Sid. Can .. 8% 8%

HoUIng er ArgusJ 26% 267g

Hudson Bay Mng 14% 14%

do. CHI A Gas.. 18% 18%

Husky Oil 6 6%

Imaaao 377a 37%

Imp Oil A. 223* 22%

Inoo 11 % 11 %

Indal 9% g%

Inter. Pipe...'. 167 b 16 7a

Mqc Bloedel. { 19

Ue^U- A. A

4,595) +10

ili - 70

Indices

NEW YORK -DOW JONES

!,!!;• :
June June, June; June 1 June . June i-
I 9 ■ a I 7 ! 4 J 3 . 2 I

I'li

Sri ndUstrV7R.B7.802J3 804.03; 80423' 81620 1 8TB28 '
H'nte Bnds.) E9.3B 38.48! 68241 68.62^ 68Jlf B8.8B

I , 1 !' [ j

Transport. 310.96 31325 5 1626 1 3T7JB7i 32SJ7 396,74 • ,

I !

Utilities ....;1B9,36 110.19 _U0.4&' 116.62' 11T26[ 110.81

TradlngVol! I J j j

000-t '65.77048,890 44,660; 44,110, 48.4M 43^20 '

i-ii! i

4 Day's high 804.03 low 789.76

High Low

88922 785.47

14/11 (8/S)
8027 55.87

msi 112/21

288.45 31023

(7/1) IB/B)

11625 10121

(7«) llfcl)

since C mpirrn
1 High Low

- 105120 4122
(11/1/75) CZ/7/S2)

4472B 1222
(16/4/81) (8/7/32)
18622 102
(20/4/88) (21/4/42)

11*. 70

FRANCE i |

CAlGeneraHSIMO/Bl) . 107.1 1082 1IB2 WtL4
ind Tendance (31/ 12/81) 1182 118.8 I 1182 11 T.B

GERMANY | f ! f

FAZ-Aktien ffi 1/12/68) ' ( C ) 226.88 22728 : 228.81'
Com marzbantdDec 1351) (o) J 8882 - 683.8 ! »w n ;

HOLLAND 1 1

AN P-CBS General ' 082 I 80.1 »2 •'

ANn-CBS Indust 11870) 682 i B3.S B8.6

HONGKONG t : “

Hah£SengBank«IM4 ; 1B0B2 1' IS27.77-’ 1548.84. 1 637.48
ITALY ’ ■ f ! i ’ "

Banca Comm RalJ 1872) \ 170.18; I73.8i' 17520; 17428

Japan** " : ~

Average HE/6/4B) ,715228 7253.05 7240.03 72422*
Tokyo New 5E (4/1/68) 637 j| 542.00 -5422 8 54224.

STANDARD AND POORS

I 8 ' J H, n8 | Jur ’ - 1 Jun " f June ! j MnM toipll'l'n

' I 8 ! 7 4 3 , 2 j H/gli l Low |-High 1 Low

Indust'la-.l 12120 129.40; 12320' 122.88| 124.80 12S.1S 137.28 ] 118.41 j 180.88 I 322
Composite! 183.38 10923' 110.12' 110J8I 111JB; 112.04' £$«! 18724

! 1 1 ' 1 . ! «/i) I 4B.-3) -ga/ii/aai mug

Indust'l dlv. yield % I— une 2 ' May 26 1 May lfl Year ago (approx

lndust‘1 PIE ratio -.

6.79

5.74

7.56

7.41

12822(25/2)

111.8 (12/8)
124.0 (12/5)

239.46 (6/4)
7292 (5/4)

952 (10/5)
742 (10/5)

f 88.8 (4/1)
I 97.7(4/1)

21325 718/1)
886.7 (18/1)

AssJour Gan 129,100

Banca Com' le .... 30,000

Bastogl Fl/j 126

Cantrale I 3.770

Oredlto Vareslnol 6,850

Flat- J 1,640

Flnslder-— J 33210

Invest- i I *,370

Italoementl 1*9,100

Montedison I 99.6

157.5| -021 I Olivetti ' J *,310

PlralllCo J 2,195

Pirelli Spa 1^31

Snla Vlaposa . 870

Toro Aisle 1 12,080

do, Pref.... : 9,800

1445.32 02/ 11 1129.88 (9/S)

212.88118/8) { 170.10 710/8)
782825 (27/1) 888823(17/3)

AUSTRIA

June 9

i

• Price , + or. |

June June June June 1 Issues Traded 1,839 1,850 1.876

9 8 7 4 High I Low 394 i 508 53B

— — —J Falls.... 1,002 | 868 905

6B.68 63.08 6326 85,42 7 120 88.62 Unchanged....... 443 I 483 I 432

(4/1) | (12/3) New Highs. 5 15 6

New Lows 166 I 121 1 176

June I June i June

NORWAY

Oslo SE (i/f/72) 1 | 7 jb

117.M 118.12 119.18' 15029 (26MI . 109.12.1/4)

SINGAPORE

Straits Times 11966) 715.15

716.29. 731.18 72721 810.78,6/1) . 687.4818/5)

Creditanstalt.
Landerbank...
Perimooser.. .

Sem peril

Steyr Daimler,
Veltscher Mag

SOUTH AFRICA
Gold (1958;
industrial 1 1836)

Madrid 8E (SB/12/81)

888.3 ' 398.8 ! 3942

5682 (5/1)
7112 (8/1)

3802 (4/BV
5262(3/6)

Volvo (Fraei

146.8 +5.5 l SWITZERLAND. .

• June 10 : priei

’ ' I ■■ Frs:

1M26I 100.B4 : to) j . W728 (9/2) | 9921 (28/6)

249 . 88 J 2 E 02 S

TORONTO Composite! 1457.ll 1483.1' 1459.'

18592 (4.1)

NEW YORK ACTIVE STOCKS

Wednesday Btadto Closing' Stacks. Closing^cn"'

Mjjm p Wta...1^1MW- P ,S -k Cities Service... tsSqo ^ 1%
IBM ,na 'M2 " > Schlumberger... S? -1%

S?y Umu.dTecf.nol 530.600 ^ -

nli,l n" ■" '3 — % Gsnersf Molars 676.200 43>. — L

mstn. Pur, ns... 853.300 13% — Tandy S&.TO 2^ + %

SWITZERLAND
Swiss BankCpn.(31/l

WORLD

Capital Inti, d/i/78}'

581.74

687 .T 5

2482

280 . 1 1

«SB- 52 ( 22 /T>

B 6522 dN/ 4 )

■ 284 , 1 ( 11 / 1 ) .

2422 ( 11/31 j

1282-1 130.0 t 1302 I 1472 (4/1)

(**) Ssturdpy, Jdne‘5: Japan Dew 7,28727, TSE 54L91'.

nm B J? 8,1 *■ 100 MCept Australia AH OnJlnary and Metals—

" YS = Common— 80: Standard and Poore— Kk and Toronto— 1 . 000 : the
last named baaed on 1975. : f Excluding bonds. *400- tadaserMa. tim
,n UrrOT W H te bl P,U * 40 UtJnB88 ' 40 FN,anc **% and ’ 20 Trensports. c Closed

592 — 0.5

14 LI: — 02

1472! —0.7

, frinanejal Times Friday June 11 JL982

Cospaaiss and Markets

LONDON STOCK EXCHANGE

Hie

' r " - .

Uneasy atmosphere develops as domestic problems
add to market concern over international situation

Account Dealing Dates
- Option

•First Dedan* Last : Account
Dealings' tlon* Dealings Day

15 pence. Reflecting fee trend,
fee. FT Industrial Ordinary share
index, vfekAi - os-. Tuesday
appeared set to achieve- -an

June 7 June IT, June 18 June 28 ? Sane record, was stowing a drop
June2X July 1 July 2 July 12 of 9.6 at 3: pm before rallying
July. 5; July .15. July .16 July 26 jaDjJbOy In fee after-tours’ busi-
*7 New -jknet' dMifng nay \take - . ness to tfiose a net fL8 down for
ptoe^frun 3 era two- business day. a two-day fall 0 * ISA at 5785. -

V'N*w-jtot»?r. dealing nay .nke - . ness to tfiose a net £L8 down for
Matron 3 era two- business daya a twoday f aU Off ISA at 5785. -

SSSSS

~ » Z. .mgs, fee s wr short tap StOCft

Newspaper,

PoUishln£

‘a-MTMMESBlO;'--

The worsening Middle East dto-. ^ c ^ ^-

atfon and'fdars about the extent hom
of British casualties- in fee Falk- - «2£i!?*25K 1 ' nm!^or

lands were, major, influences.

Sentiment was also adversely :

Slf- ££,

£^4 ct, SL!S? 3£ n r”&; ‘mw wj-r

imHtTtfmK nmariVnwnnn. «« .’Carte feaCK feat XQUdl to 97f, aM

■ *P.\ "

P ' . •*■ t

mounting upward ^pressures on ,

fee pay front Wall Street’s ?°£F
decline to tows for fee year was
another unsettling factor. iog ia;

Equity dealers again defen- latter ■
shdy lowered leading shares at lowest
fee outset and- fee manoeuvre . -
was successful in feat it die- _■
couraged ' setting of any size. BailK
Values held at .fen' Sower levels
form ost of the morning session- . Tie

other tongs .sustained losses to
|. Hie shorn were rarely: more
than i down on balance, steady-
ing later wife sterling as fee
latter recovered from fee day’s

Banks fall

-fomt ost of fee morning session- . Hie major clearing' hanks “House” close and then raced
-in sribdaed trading, bat took a turned distinctly dull. Midland, *ater to end 10 up on

further tarn for the worse just a fern market off late, on -fee ; balance at a 1982 peak of 22 lp

before noon on growing tumours flOGm. Loan stock I* 1 ® 11 * on farther strong speculation of

that, another broking house retreated 15 to S40p, while-deal- , ^ earfy devdopmeut. Else-

would soon «atse to trade; prab- ings 4n the new J&paid 14 per. ^ insurances. General

fcans stemming from arbitrage . cent Unsecured Loan stock 2000/ Accident put on 6 to 312 t>, as

operations were also said to be 07 got off to a disappointing ^ GBEt 282p Sun life im-

posing financial difficulties for Start, opening and closing at i - proved 5 to 340p in belated

toms stemming from arbitrage
operations were also said to be
causing financial difficulties for
another firm of brokers.

Equity markets retreated
throughout fee afternoon- -in an
uneasy . atmosphere until fee
official, 3.30 pm,., dose. Losses
approached- doublefigures. In top
stocks, stub as GEC, while fee
XTK dealing banks also bad a
bad day wife falls, ran g in g - .to

fee . absence of fee much- dividend depressed Sonic Sound
rumoured dawn raid, Minet had even further and fee -dose was
recovered to 209p by fee 9 down at 48p, -which compares
"Souse ” close and then raced wife fee 1982- high - of 129p.
away later to end 10 up on Heelamat cheapened 4 to 68p.
balance at a 1982 peak of 22 lp Of fee leaders, .Marks and
on farther strong speculation of Spencer gave up 3 to 165p.
ra eaiiy bid development Else- ^ ^ ^ defence stocks

« ®C Jn^ S feeretreat
^JSe *"&£“ 55* ^ in ttf alattai. She forms- losing

14 more to 934p and. fee latter

S^rrto^TtostlTto ^.SSSeto^LftSty SfeXS Fe J™2

as did Natwest, 4Wp,wbiIe SSon of Afri^ iScrSSngiS 5™** 20
Barclays gave top 11 at465p.HUl. ^ in fee SSpaiytonlariy °n tapes of a tod from

SamneTs' good figures had f^Ser cent - S** 86 * .recently. buoyant

already been well discounted*. ’ JT, * Udted Scientific relimjaiaheti 12

fee sfhaiMaiccumtoing to. fee . Est ? le a 2 ent Bairstow Eves to -385. Comment on fee results
generalddM trend and ctodhg * successful and active left United Electronic a couple

7 dtwn at 160p. • . ■ markd debut given the prevail- of pence lower at 25p.

Sold down to 203p toittoHy>. Sn^and'rfored^atSlD^tS eocounteredfrefe seU-

strength on (hopes of a tod from
Plessey, and recently- buoyant
United Scientific relinquished 12
to -365. Comment on fee results
left United Electronic a couple
of pence lower at 25p.

Vickers encountered fresh sell-'

. opened and closed at Sip after
tWiimr 52n corrmared «rife fee 148 P

innesburv

t*-*

c .- . .

i ■ * ' r

•*» .

•• -j

■f

■ 'j o

■*

v * ? a.-

• I • £,-

FINANCIAL TIMES STOCK INDICES

Oovommant Ssa 6M8 .70.13 70^9 70.40 70.16 70D8 65J89

Fixed Intarost.^..^ 69^7 70.10 70.32 7052 70 J2 70 j»

Industrial Ord._. ! 678.S 387.3 594.0 592.6 5875 586 ' 8 536 A

Gold Ml DM 228.2 231^ 335,7 238.0 ' 2 22.0 224.0 541.0

OnLtoV. Yield 6.42 6.35 5.31 6J3 ' ' 5-37 5.39 6j01

EamJngs, Yld.S(fuD) 11.30 11.16 11.06 il.ll 11.19 11.23 11.96

P/E RehO (net) . 10.75 10.91 1039 1004 10^8 10.82 10.44

Totalbaroalni 16,737 16,574 17^26 16^38 17,032 15,399 19.Q62

Equity turnover £m. . 123.48 165J3 128.40 13&50, 123^6 147^5

Equity barualna 12 ^BoJ lB,25al 18,498_14,SSoJ l3^3C^14^47
* * . _ 1 ' *' ’

10 am S80A- 11 am 680.9." floon 680X -1 pm S7S.3.

2nm B77.7: 3 pm S77y..-:-

Bnta 100 Govt. Sect. . 16/10/28. F9xed Irrt. 1828. hatuswiaf Old.
1/7/36. Gdd MidM -0/3/53. S£ ftrivity 10H- tCaereoted.

LofeMt into 01-M6 8026;..'

•' -^Ml-fl.86.

5.35 5.

11.16 11J
10 10 .

June June
7. ■ 4

June

3

A.

year.

ago

70.40 . 70.16

70.08

65.83

70.32 70J2

70^86

67^4

592.6 587.0

586.8

536J

828.0 " 222 j)

224.0

341.0

6J3 5JT7

5J9

6j01

ii.li u J9

11.33

11.96

1034 10^6

10^2

10.44

16^38 17,032

15,399

19.QS2

128.40 136,50

X23J8

147^5

12,498 14,850

15,230

14^47

touching 52p compared wife fee
. offer- price of 4fip.

. Breweries trended easier, wdfe
.Bass reacting 8 for a Call off 12
to 235p since fee interim figures.
Elsewhere, Distillers came on
offer and feH 7 to I78p,
Particularly firm .-of laite on
recovery hopes and Interest rate

settling at 14»p for a fail of 5
on balance. Other josses' in fee
' E ng i n eering leaders were
usually limited to a few pence.
H, recently unsettled by a
•• broker’s downward revision of
profit - estimates, became a
steadier market and closed with-
out alteration at 129p. after 126p.

optimism, Building issues turned Secondary Issues were featured
back on scattered setting and- ^ a toil of 13 to 53p in B.

fee absence of further support.
Blue Circle closed 8 down at
466^ and Tarmac fee same
amount off at 590 p. Elsewhere,

Elliott on fee annual loss and
passing of fee final dividend. -
Sugar issues were not helped
by the fall in fee commodity

Tilbury Group moved against price to below £100 per tonne:

fee trend with a rise of 10 to a
peak of 535p following fee
announcement that KIP Securi-
ties, a subsidiary of private
investment company Bajau, had

Tate and Lyle lost 2 to a 1982
low of 174p, vfeile British Sugar
reacted to 450p before closing a
net IS down at 455p. Elsewhere
in Foods; Northern ,s bed 6 to

HIGHS AND LOWS

S.E. ACTIVITY

-U82 . Stood CoropUa.t’n

• ;

June.

June .

Higli

. Low High | Lbw

ST

Govt Sacs...

t*: _ •

70140

■

61JBS 127.4 49.18

C*iD .-fNUH) (5/1/71)

—Dally ■.•••
Gift Edged
^Barflalrw...

; 1MJ5

200.1

.Fixed Int-.

70.52'

62.79 150.4 30^5

Bargains.-

633

98.B

, CH*>

- (7/U 28/11/47: (3/1/78)

- 249.6

313.8

in d.-Ord-....

594 S>

518.1. 597.3 1 49.4

Gold Mines .

ta/®)

302.0

(8/1) (SO/f/BQ (29/6/40)

* 209.2 BSSS f ‘ 43/5

. Bargaiiffi-.
Equities

187 A

181J0

, 'PTO pfl/flO)^(2fl/ID/71)j

0 arga ineUi
Value

89,1

069.fr

88^

23UB

increased its stake in fee com- * I50p despite fee satisfactory
pany to 9.6 per cent. -interim figures. Ag ains t the

. trend, soft drink concern J. N.

Some SOQlld flat Nichols (Vlmto), a thin market,

L. , . . gained 10 to 260p on seasonal

ICI met sporadic selling and influences,
declined' 8 to 824. while Fisons . . . _ 7 .

shed a sknflar amount to 353p. mi

Amersham lost 7 to 216p and SJSiJtSFSS^L 5i2

recently firm Hickson and Welch ? e com Pf ny fca ? b f 1 f n T S rant ?fl
10 to 252p. T^i gk Interests a liceirce for the Impwial

.dipped to 92p on disappointment Hussffil Square,

wife fee preliminary results c ^.^s.

before picking up Jo -close 'just - oOtxieDyS’TftaCt -
.2 on. balance at • Falls among! fee miscellaneous

Plysu hardened a penny to 118p industrial leaders ranged to 8.
in response to fee good annual Reed International, ..which
results, 3 nd propose d one for-tea reported disappointing pfelimin-
ficrfp issue, while revived ae- ai y figures- on Monday,
manj m^a Hun market lifted decUned that much to 3l6p.
Wolstenholme Brek 6 to 125p. Nervous offerings in front of to-
Althou^i poor -figures had day’s annual results clipped 5

Sothebys react -

■ Falls among! fee miscellaneous
industrial leaders ranged to 8.
Reed International, ..which
reported disappointing prelimin-
ary figures ■ on Monday,
declined that much to 3l6p.
Nervous offerings in' front of to-
day’s annual results clipped 5

been expected, fee £0.57m first- more from Ptikington at 228p.
half deficit and slashed interim Secondary issues were featured

by a loss of 12 to 27Sp, after
26?p, in Sothebys following
reporta of / the company’s
rationalisation moves in fee '
UJS.;- Christies International
cheapened 6 to 126 p in sympathy.
Disappointing resuits prompted
a fall- of 5 to 64p fit LCP and
Applied Computers dipped. 7 to
191p, after 190p, on the proposed
rights-issue which accompanied
the annual figures. Still con-
cerned about the company’s'-UIS. :
property interests. European
Ferries cheapened 2i afresh to
67}p.

Defence stocks came on -offer
with British Aerospace closing
8 down at 216p, Vinten a similar
amount lower at 300p and Smitirs
Industries 9 off at 348p- Ext el
encountered profit-taking and
lost 10 at.3S0p but Rolfe aod
Nolan contrasted with a jump of
14 to a 1982 peak of 72p in
response . to . fee better-than-
expected results.

Nlmslo again lacked support
and lost 25 for a two-day drop of
47 to 160p. Travel issues re-
mained under pressure . on
worries about falling ' bookings,
Horizon losing 10 more to 198p,
Intasun 8 to 127p and Saga 5 to
140p.

Properties displayed a dull
feature in Great Portland Estates
which shed 10 to 152p, the lower-
than-expected asset value out-,
weighing the 31 per cent revenue
increase and one-for-six scrip
issue. Elsewhere. Trust Securi-
ties reacted to a 1982 low of
64p before picking up on fee
company’s reassuring statement
about the proposed Stockley Park
project in Hillingdon to close 4
cheaper on balance at 68p; the
Deferred sbed 9 to a 1982 low
of 61p. Falrview Estates, a ris-
ing market recently in fee wake
of favourable Press comment, lost
fto I08p.

Oils subdued

Partly reflecting disappoint-
ment wife fee new tax conces-"
sions for fee offshore oil
industry, Oil shares passed a
rather subdued trading session.
Leading issues opened lower.and
tended to drift off further,
British Petroleum ending 6
cheaper S12p. Shell displayed
a little more resistence, ending a
couple of pence down at 420p,
after 418p. Ultramar fell 10 to
390p and La&mo 5 to 320p.
Among fee more, speculative
issues, Son (UK) Royalty ad-
vanced 30 to 190p in a restricted
market

Against fee dull trend in
Overseas Traders,' James Finlay
hardened fee turn to 93p follow-
ing the interim statement-
Crosby House cheapened 6 to
120p and Sime Darby lost 4 to
51p.

Reflecting overall dullness in
equities, Trusts generally eased-
Among Financials, Security
Pacific's" plans to acquire a 29.9
per cent stake in Hoare Govett
stimulated interest in Akroyd and
Smithers which improved 8 to
226p. Money brokers gave
ground, Exco International
easing 7 to 203p and Mills and ‘
Allen 10 to 460p.

Against the occasionally easier
trend in Textiles, Bnlmer and
Lumb responded to favourable
Press mention with a rise of 4

RECENT ISSUES

EQUITIES

Ifttua Sc* . 1982

Prtc* IbScI —

p 3So

“ ; High Low

to 44p. Nottingham Manufactur-
ing, in contrast met fresh profit-
taking and gave up 8 to 175p. In
Jlne wife fee other leaders,
Courtaulds were dull at Sip, down
3.

Tobaccos drifted lower. Bats
reacting 5 to 450p and Imps 2
to 96p.

RTZ down again

- The welter of - selling that
prompted fee sharp decline in
RTZ in- -interoffice trading on
Wednesday gathered pace yester-
day as the shares retreated 20
more for a two-day drop of 43
to 377p, after a year’s low of
375p; fee selling was again
prompted by fee weakness of
London Metal Exchange copper
prices which at one point yester-
day fell to their lowest since
August 1978.

Among fee RTZ group's copper
producers. South Africa’s Pala-
hora gave up 25 to 450p while
Papua New Guinea’s Bougainville
fell 4 to 63p. RTZ*s Australian
associate CRA lost S to 162p.

Other mining issues were
similarly depressed. ■ Golds fell
on profit-taking and the lack' of
progress by fee bullion price —
finally $1-5 easier at $326,875 an
ounce.

Share prices were firmer at
fee outset, sustained by light
buying interest from Johannes-
burg, but subsequently drifted
lower on lack of interest and
fee downturn in gold to (dose
showing widespread, although
generally minor, losses. The
Gold Mines index fell 3.1 further
to 228.2.

South African .Financials gave,
ground in sympathy with Golds.
Geneor closed 20 cheaper at
TOOp, De Beers eased 3 to a 1982
low of 203p, UC Investments
gave up 10 more to 410p and
* Amgold to £30i.

London’s Charter Consolidated
dropped 7 to a year’s -low of
188p and Gold Fields 12 to a
low of 333p.

Australians registered a broad
decline, upset by weak precious
and base-metal prices which en-
couraged sustained selling in
overnight domestic markets.

Only 1,095 traded options con-
tracts were completed yesterday,
comprising 570 calls and 525 puts.
RTZ were fee busiest counter,
recording 220 deals, 127 puts and
93 calls.

OPTIONS

First Last Last ' For

Deal- Deal- Declare- Settle-

ings lugs tion ment

May 24 June 11 Sept 2 Sept 13
June 14 June 25 Sept 16 Sept 27 I
June 18 July 9 Sept 30 Oct 11 1
For rate indications see end of
Share Information Service
•Money was given for the call
of ICI, TI, Lots, Blade and
Edgington, J. Hepwoxlh.
Sovereign Oil, Huntley and
Palmer. Eagle Star, Premier

Consolidated, Consolidated Gold
Fields. Woodside, Bellhaven
Brewery, Barker and Dobson,
Ultramar, Minet Holdings and
Empire Stores. Davy Corpora-
tion- were dealt in for the put.
while double options were
arranged in Lots and UDS.

^aao f.p.

190 FJ.
IB FJ>.
I860 F-P.
U30 F.P.
|873,p J^p.

|2SO F.P.
1105 F.P.
■ 600 F.P;
. 77 F.P.
140 F.P.
« FJ».
W F.P.

9SfB 880 265 Amsoc- He** Service* 97B

— 62 60' Bairstow Evas 61 p

— , I0t j 92 « Blade (Michael) 20p 07

fe 4 32 19 Cambrian & Gen. 7tp 30

4/8. 420 2dS i£Cont. Microwave 480

28/5 162 140 *Druck Hfdgs. 168

a S/S' 88 04 Eiectre-Prot.US90.B0 64

— 17 10 aOroup In v Option — 14

14/3 ' 250 840 *lo Technology- 247

— 121 UO ponies 33 top. .115

— 630 627 Orftlame SA (USSI-M) 627

— 97 BB * Radio City ‘A’ NV. J 92

— 176 160 « Ruddle (GO top. 176

— 29 19 Stewart Naim— J 85

— 80 BO Zambia ConcXlpr IBKl 60

562 Eg 2-?S

bO.O 2.1 4^ 14.1
bljBl 2JB MllS
U 3.0 B.4 M1M

66^20 ZJ3 1.8116.6
b2.3 2.5 2.0QB.1
uaiAsOJ i.oTiij

ud 2 .o (' 4.5 an io.o
bQBOc 2A 4.4 10.1
bB .6 1 1.6 8.7 MLS
b3.3 2.6 2.7 US

FIXED INTEREST STOCKS

Ismib §3Sc,
prloa | 2

£ 1.2

flOO I £10
4BB.BM £25
*>100 F.P.

** FJ».
^100 F.P.
4100 F.P.
1100 F.P.
98.56 £26
1100 £10
1100 FJ».
JlOO F.P.
$100 F.P.
*10? F.P.
flOO £10

Ja: Nigh U> w

~ iT~ ioig
14/7 251* 21ls

i/7 102 mom

— 1461s 136

— .47 38

— 46 45

— 101 B85 4

— -25. 24 >a

— - 11 11

— 10070 100 A

— 100 9»f„

— 1001 s 1001 a
29/4 1131a 1091c

— 11 101c

Stock .

BoumamouthWater9% Red. Prf.’87 69
Cred. Fonder do France 1*fS LonJOOT
East Anglia Water 9% Red. Pit. 1987.
First Nat. toipc Conv. Una. Ln. 1987 M
Grt. N!rth'ii Inv. 4 pc Net Cum. Prf. £1
bo. 4.7pe Net Cum. Prf. £1
Marlborough Props.lOXCnv. Ln.’38-gQBZ
Midland Bk. 14% Sub. AJ ns. Ln. 20B247.

Mid-Southern Wtr. 9J Praf. 1987

Nationwide Bdg. Soc.l44ig (23/4/83)
Do. 137a% (23/5(83)

Do. , 13*5* 13/6/83)^

Queen* Moai 104% Cnv.'B9-91

Wrexham Water 3% Red. Prt..’a7-89_J

L 11

f 24 U —ft*

1011 *

142

39 ^

46 __

BBS* _
84ft* —

11 .

10 OS« +ia
100

1001 s

1121 m —
! 11 _

-‘RIGHTS” OFFERS

Issue

s- Renunc.

1068

o
c e

S^ a

P

<1 • ■

High

Low

3 a

10

170

F.P. 27/4 28/5
F.P. 13/5 24/8

155«

190

10 Ansbaeher (H.) Bp—, —

180 Bank Leumi (UK) £1...

ldi

185

174

174

DkriB9

5

Nil —

Nil — —

F.P. 10/5 81/6

59pm

5>agm

44pm Grand Met'50p...'.

3pm Great Northern Tai l£10) —

53pm-

3gm

600

F.P. 20/5 18/S

' 615

600

500

F.P, 89 JS 1EL6

690

530 Do. A.,

580

Dr. IU
50 .

Nil — . —
Nil —

2i*pm

Bpm

2^4 pm Norsk Hydro (Kr. 100) —

6pm Proas (Wm.) 10p

SUpm

6pm

170

Nil “ *™

F.P. 14/5* 11/6

272 Steel Bros— - -

242

133

F.P. 10/5 10/6

Reaandatkw data aanaDy Ittt day for dealing ftwrof stamp duty, b Rgmsa
baaed on praspectua aatlinata . d Dividend rata paid or payable on pan el
oapitah cover baaed on dividend on toB capital, g Aaavmad dividend and yield.
t Indicated dividend: cover relates to previous dividend, P/E ratio baaed on I Mast
annual earning*, o Forecast dividend: cover baaed oa previous yarn's earning*.
F Dividend and yfald based on proapectne or other official asUmatsa for 1962.
Q Gioss. T Figures assumed. 0 Figures or report awaited, i Cover aOown for
convan/oe of States not now nuking far dhddsnd or ranking only for mntrlctad
dividends. § Placing price, p Ponca unless otherwise indicated. 1 Issued by
tender, f Offered to holder* el ordinary abates as a "rights." M lasoed by way of
capitalisation- SI Reintroduced. « Issued In eonnactloa with rsorgantaatien,
mergar or take-over. || tntroducrioa. □ lasttsd to former prefarame holders.
■ Allotment (attars (or fully-paid). • PravWoaal or partly-paid aUotnMOt letter*.
* With warrants. ft Dealings under special Rule. ❖ Unlistad Sscurltiaa
Marital. « Loodoo listing, f Bfacthra Issue price after scrip, t Fbnaariy
dealt in under fbda I63/2J (a). A Issued free aa an oaMfe/neat to onRoary
hoiders.

ACTIVE STOCKS

Above ever age activity was noted in the following stocks yeatarday

Stock pane

Bairstow Evas ST

British Sugar 455

Great Portland Estates 152

ICI 324

Midland I4pc Uns Ln

2002-07 £23=

Minet ' 221

pence change
61 —

Stock pane

Plessey 460

RTZ 377

Rolfe and Nolan 72

Sonic Sound 48

Sothebys 275

Western Mining 188

pence change

WEDNESDAY’S ACTIVE STOCKS

Based Dn baigaine recorded in S.E. Official List

Wednesday's

Wednesday's

Stock

No. of closing
piice pries
changes pence

Day’s

change

Stock

No. ol closing
price price
changes pence

Day's

change

GEC

14

948

- 7

Minet

10

211

+ 7

LASMO -

13

325

- 5

Fiffcington

to

233

-15

rtz :

12

397

-23

Racal Elec . .

10

425

- 5

BICC

11

350

- B

Tilling (T.) ...
Allied-Lyons . .

10

133

- 5

Euro Ferries ...

IT

70

- &2

9

99

—

BAT Inde

10

455

WTO.

Barclays Bank

9

47B

:+ 4

Cable '& Wire

10

260

“ 8

Plessey

9

465

—

FT-ACTUARIES SHARE INDICES

These Imflces an tte joint c«i*Uta of (Ik RnncW Times, the tefflate of Adories

and the Fhorty et-Acharies

EQUITY GROUPS
& SUB-SECTIONS

Thur June 10 1982

Mon . fri

Jree Am

7 4

W UUUMfcU * »WI*U £st_ Gres w

EMMS Or. PIE

Figaros hi parentheses show Dumber of Mot Dtfs YkU%YHd% Wb bdac Mb Itfa luta Wh

1 -igares ra Nb Change (MbJ (ACT Met) Mo. Nn. . Not . Nn. Meu.

1 CAPITAL OOPS (20?) -

2 BeWkig Materials (23)—

3 Cortmctinq,Goattnicttow( 2ft ) — —

4 EtecWcals (31) —

5 Erig h n eerin B Cew tra ct a ra O H— —

6 - Mechanical Engtaeeriis<67)_«.

8 Meteb and Metal Rvn/iaflCU)

■ 9 Motors GW .. . , T . — —

10 Other Industrial Materials n»

1 21 CWtSUMER GROUP (201)

22 Brewers sod Disailers(2Z) —

25 FoodMam fa KtBrinBl22) —

2b Food Retaiflna CM)

27 Healto and HousehoU Products (8) —
29 Le/sunj (23) — I

32 Me w ipimrei PMbfcHngOZ). r~

33 PKkaglag and Paper Q4)^

34 Stores («) ! :

35 Text9es(23)i — — *

36 Td am B)

39 Other Ctwaaner OS) . t

41 ennMoupso))^ — - —

42 Chemicals 06) - ■■■■

44 OfffcaBwIpmaRW - —

45 SW^pptaBandlVwpprtClS) — ~—

46 iftbellg neaus ^

49 IMUUSTOM.GR0UPf48n^^
a_ ons 03?

39 500 SHfllhE INDE X m —

61 nmwcuLGROuHixn

62 Bania(6) : —

63 OhttiBHt Houses (9> ~ —

65 lrBBrtnceUJfcX® ;

66 Insurance (Cook«stte)(lX». —

67 hseranceBrelteisO). ■ - —

68 MerdontBads(12). — — :

6? Property M9) --

70 Other Financial 05)—

71 Investment Trusts CUD —

SL Mh*iaF : kaB0eC4) —

91 Overseas Trar *f<n m -

99 AIXrSHARE INDEX (730)__

J9MJ -2-4
mu -17
619.07 -16
M64L17 —12
<W067 -16
202.99 L7
16312 -16
9200 —16
36605 -06
32164 -L5
327 JZ7 -U
26425 -26
C15J2 -16
472.72 -li
93B37 -93
B434 -06
15048 -13
mo —16

16963 -23
334.95 -12
285J7 —06
2062 -15 .!
34668 -19
112.45 -14
57128 —06
33863 -13-
33315 -14J

156.43 406
52131 +44
14361 -16
41769 -14
17122 —0.9
300.47 -11
28253 -45
349^1 -11
33459 -16

FIXED INTEREST

PRICE •_
INDICES

1 Syaan

2 5J5jeaei —

3 Owr 15 years-

4 kredBoMMi.

5 A« Stocks—

Tar

-Jane

10

D**

change

%

MW

Jooa

. 9:

J

HUB

tU*

ttvta

HUB

urn

mx

rU 2

117-99

HUB

4a

12267

U35B

-M3

pus

M

~Mk

n»_.

—

6 M 0

AVERAGE CROSS
REDEMPTION YIELDS

5 yen. —

25 Jus

5 jeart—

15 yeas

25 jeas-* —

5 years.

15 jobs. — -

25 jearc. — ...

5«!

15 stars-, —
25 mbs — ...

Thur Wed
Jisie Jne
10 9

1 Um

2 Copans

3

4 Medkan

5 Crepons

6

7 m

8 Coupons

9

10 hredOHN
111 Behs S i

NEW HIGHS AND
LOWS FOR 1982

The inflowing qeotattoiu In the Share
Infljrmrtun Serrlce rerterflav atUleefl eew
High* and Lows for 1982.

NEW HIGHS (23) .
•exits ( 3 i

B m tu iiw oo d Greene Ring

BOIUHNGS (1)

Tllbonr Groan ,,,

STORES <1J
Northern GoWtmitb

ENGINEERING (11

A dwelt >

INDUSTRIALS (SI

Bestobell Standard Fireworks

Metal Closures ZygaJ Dyn.

Rolfe A- NoJm

INSURANCE (3}

Legal 4> Geno-il Son Ute

Mlnac HoW ,, »* tW 5 p ApBls |nj

n,

A.I.D. G. B. Paper* .

Cneoer (James,

TEXTILES GO _

SmaUshaw (R.) Stirling Group

TRUSTS (2)

Akroyd Smithers Au tho rity In**. .

OIL AND GAS (2)

Jackson Ex. Orbit

NE1V LOWS (85)

FOREIGN BONDS (1>

^^V^ICANS (41 .

Beth. Steel Rep- N.Y. Cora.

H udN,n',Bay BAN| ^ ^'

Bank ol Scotland Manton Flnaoca

Oo. Ba noire BUItD|NGS ( 3 ,

Crouch Group Glossop

FJnUn (JOhnl

STORES (*>

Baker* Store* .

“'waakBuwcj.,,,.

ssKl. sssvifisa

U » rttF - HJ FOO MW.

1 Cullen* "A” RHM

CSR London A Midland

Caoe Ind*. Macpherson CDJ

KSie tot ■ Mas. ship Canal

ii-o fSiw Sthlamberger

Francis inds. Sothreyj

H ^ n ,N S URA^g5 NV .

TabhoM^/ne MOTfJ 1 g-^«

Armstrono Eootoment AmHevard
Automotrie Henjrs

Supra Group WWPg" Motor

PROPERTY

l Great Portland Eats. - Samuel Props-
North Brit Props. ,rtv - 4 ieca -

Prop. Hldo. A lav. TwtSjo.

Rash & TomBkln*^ Do. DeM. Cqn*.

TEXTILES (11 . .

Carrington Vovelto^ • .

nampto-Trurt ^MJjHPinre.

Berkeley Ex. Doable Eagle

cSllImftel Magnet ftfttoli

OVERSEAS TRADERS OT
C rosby Housa Slrne Darby

LOnrh ° RUBBERS £2|

8ert "" TEAS '

McLeod Russel M(ME5 .

Bradcvi North B. Hill

Western Holdings PawntUnental

Charter Cons.

, Cons. Gold Fields

Mtaorro

De Been DeftL
Zam. Copper
Haoma

Mid. East Milts.

Peko-WsHsend
Voltan Mins.
W. Mining
' Aver Httam
Tronok'

HTZ.

RISES AND FALLS
YESTERDAY

- J- 321

.from the JWWMV^TlNfiffNicU^ ■■Tttm AfWAto House, Ganm Street, Londcn, H34P m'i, prtce 15ft by post 2S&

' British Fund*

! Corpns. Own. end
Foreign Bonds .

! industrials

Financial 8 Props.

! Oils - -

; plantation*

: Minas -

othare

Rises Falls

Seme

2

St

9.

2

’ 12

63

71

486

778

2B

232

244

7

46-

57

2

TO

11

-8

69

82

21

65

6S

141

1*016 1J08

WORLD VALUE OF THE DOLLAR

Bank of America NT & SA, Economics Department, London

The table below gives Dm retas ol exchange for the \J;S. dollar against various quotad are Indicative. They are not based on. and are not intended in ba
currencies aa of Wednesday, June 9, 1982. The exchange rates listed used as a basis for, particular tranaactiona.

are middle rates between buying and sailing rates aa quotad between Bank of America NT and SA does not undertake to trade in all listed

banka,, unless otherwise indicated. All currencies are quoted In foreign foreign currencies, and neither Bank of America NT and SA nor the Financial

currency units par one U.S. dollar except In certain spserfiad areas. AH retas Times assume responsibility for errors.

COUNTRY CURRENCY

Afghanistan. ... Afghani (O)

Albania Lek

Algeria Dinar

Andorra. |s£|££ta '

Angola^ Kwanza

Antigua — E. Caribbean f

Argentina. Peso (f) ( 8 )

Australia Collar

Austria Schilling

Azores. Port. Escudo

Bahamas. Dollar

Bahrain- Dinar

Balearic Is. Sp. Peseta

Bangladeshi Taka

Barbados Dollar

h-i-,,,— ( Franc I®

Belgium i Franc (F)

Belize Dollar

Bonin.- C.F.A. Franc

Bermuda Dollar

Bhutan... Ind. Rupee

Bolivia. P«o

Botswana Pula

Brazil - Cruzeiro

Brunei Dollar

Bulgaria. Lav

Burms^ Kyat .

Burundi* Franc

, Camaroun Rp^... — C.FJL. Frano

Canada Dollar

Canary la Sp. Peseta

Cape Verde Is.. — Escudo

Cayman la Dollar

Can. Af. Rep.- - C.F.A. Franc

Chad C.F.A. Franc

Chile .u— - Peso (Ol

China - Renminbi Yuan

Colombia Peso (O)

Comoros - C.F.A. Franc

Congo P*plo. Rep. of CJFmA, Frano
(torts J Colon (OJ

Costa Rica \ Coton

Cuba..; — Paso

Dyprua. Pound*

Czechoslovakia. — Koruna (O)

Denmark-.! Krone

Djibouti Rp. of ...... Franc

Dominica E. Caribbean 9

Do min. Rep -

Ecuador-..-

Peso

Sucre (O) (67)
Sucre IF)
Pound* tO)
Pound* (1)

Egypt 1 Pound* (1)

El Salvador- — .... Colon
Eq’tl Guinea.,-.... Ekuele

Ethiopia BHt (O)

Faeroe la — Dan. Krone

Falkland is - Pound*

Fiji - — - Dollar

Finland - Markka

France— Franc

Fr. CTy In Af. C.F.A. Franc

Fr. Guiana - Frano -

Fr. Pac. Is— C.F.P. Franc

Gabon — - C.FJL Franc

Cam bis Dalasi

Germany (El OstmarkfO)

Garnuny (Wi.-.— Mark

Ghana.— Ceoi

Gibraltar — Pound*

Greece Drachma

Greenland. Dan, Krone

Granada. — ... & Caribbean 9

VALUE OF
DOLLAR

6BJB5
6.6959
4.54
6.30 ‘
107.58
30^14
2.7085
14475.
0.9599
17.025
73.15
U >0
0^77
107.52
2167
2.01
: 4535
4933 -
2.00

• 315.00

IPO
93458
4430
10642
... 166.62
. 2.13

0343
- 6.4516

90.00 .

. 31530

46626

10.762

64.70

• 0.835
. 315.00

315.00
. 39,00

1.S709
7336
31500
■ 315.00
8.60
38.09
0,8281
2.1552
. 3J0 0
8-1887
177.72
2.7025

1.00
33J»

. 48.60
’ 1.4286
1.2195
2^0
215.04
2.0697
6.1887
1.7732
0.9309
4.B245
630

315.00
6.30

109^71

316.001
3.2558

2.416

8.416

■ 2.75 -
1.7732
66 JO
• 8.1887
2.7023

CURRENCY

Goadaloupe .Franc

Guam — U.S. 5

Guatemala — Quetzal

Guinea Bissau Peso

Guinea Rap Syll

Guyana - Dollar

Haiti Gourde

Honduras Rep. Lempira -

Hong Kong Dollar

Hungary. — — Forint

Iceland Krona

India. - Rupee

Indonesia Rupiah

Iran Rial (O)

Iraq Dinar,

Irish Rep — — — — Punt*

Israel - — Shekel

Italy. Lira

Ivory Coast C JA Franc •

Jamaica— — Dollar

Japan Yen

Jordan — Dinar

Kampuchea....- — Wei

Kenya...,- Shilling

Kiribati - — Aust Dollar

Korea (Nth)- Won

Korea (Sth/ — Won

Kuwait :... Dinar

Lao P'-pis D. Rep... Kip

Lebanon Pound

Lesotho— - Loti

Liberia Dollar

Libya. Dinar

Uechtensfn.- Sw. Franc

Luxembourg Lux Franc

Macao — Pataca

Madagascar D. R.. Franc

Madeira - Port. Escudo

Malawi Kwacha (5)

Malaysia. - Wnaglt

m.ihiu* in. I Rufiyaa (Ol
Maidive is. - { Rufiyaa (Mj

Mall Rp— — Franc

Malta- - Pound*

Martinique Franc

Mauritania Ouguiya

Mauritius- Rupee

Mexico Peso

Miquelon Fr. Franc

Monaco Fr- Franc

Mongolia Tugrik fO)

Montserrat E. Caribbean 9

Morocco Dirham

Mozambique Metioa

Namibia. SA. Rand

Nauru is.... Aust Dollar

Nepal Rupee

Netherlands - Guilder

Noth. Ant’les ......... Guilder

New Zealand....— Dollar

Nicaragua. Cordoba

Niger Rp.-— 0,F>. Franc

Nigeria....- Naira (OJ

Norway Krone

Oman, Sul tans to of Mai

Pakistan Rupee

. Panama.. - Balboa

Papua N.G. /. Kina

Paraguay- /Guarani

Peru - Sol

Philippines - - Peso

VALUE OF
DOLLAR

6.30
1.00
1.00
39.6265
22.2317
3.025
6.00
- 2.00
5.838
34.4983
10.06
9.3458
654.25
. 82.92
. 0.2953
1.435
22.39
1331.90

315.00
1.7B35

248.88

0.55

na

10.7643
0.9599
0.94
737.40
0.2877
10.00'
5.06
1.0977
1.00
0.2961
2.0565
45.65
6.0686
557.50
73.13
1.0832
2.3215
33 3
7.55

630.00
2.4458
6.30

51-29

11.2575

47.47

6.30

6.30

3.3556

2.7025

5.8963

30.3406

1.0977

0.9599

13.20

2.6715

1.80

1.3243

10.05

316.00
0.6753
6.1316
0.5466

12.8078

1.00

0.72B5

126.00
651.01

8.441

Pitcairn ls_

Poland

Portugal -

Port Timor.

Puerto RJco—

Qatar,.,..

Reunion 11 b de la...

Romania

Rwanda

St Christopher.

St Helena.

St Lucia

St Pierre.

St Vincent

Samoa (Western)—

Samoa (Am J

San Marino

Sao Tome ft
Principe DR—.

Saudi Arabia

Senegal -

Seychelles.

Sierra Leone

Singapore

Solomon Is. ..—
Somali Rap —

South Africa

Spain

CURRENCY

NX Dollar
Zloty (Oj
'Escudo
!E»cudo
|U.S. 9

RlyaT

Fr. Frano
Leu CO)

Franc

E. Caribbean 9
Pound*

E. Caribbean 9
Fr Franc
E. Caribbean S
Tala
U.S. S
It Lira

-. Dobra

— Rival

... C.FA. Frano

— Rupee
... Leone
... Dollar

— Dollar
Shilling (31
Shilling (4i

.... Rand
.... Peseta.

Span. Ports In N.

Africa. -

Sri Lanka...,

Sudan Rep.

Surinam -

Swaziland -

Sweden

Switzerland- -

Syria.

_ } sp. peseta
. Rupee .

. Pound* (1)

. Guilder
- Lilangeni
. Krone
Franc
.. Pound

Taiwan -

Tanzania

Thailand

Togo Rep -

Tonga l*.

Trinidad ft Tobago

Tunisia —

Turkey.

Turks ft Caicos

Tuvalu ...................

Uganda-

Utd. A'b. Emir. ...

Utd. Kingdom

Upper VoRa

Uruguay
U.S^.R. —

Vanuatu

Vatican

Venezuela-

Vietnam.—

Virgin is. Br.

Virgin la. u.S

Yemen...

Yemen POR

Yugoslavia

Zaire Rp.

Zambia.-

Zimbabwe- —

. Dollar (O)

. Shilling
.Baht

. C.F.A. Franc
.Paanga
> Dollar
. Dinar
. Lira
. U.S. S
. Aust Dollar

. Shilling '

. Dirham
. Pound Sterling*
. C./f-A. Franc
. Peso
.• Rouble

. Vatu

Aust Dollar
Lira
. Bolivar

:S T* i0)

. U.S. 5

.-Zaire
..Kwacha
. Dollar

VALUE OF
DOLLAR

1.3243

80.00

73.13

n.a.

1,00

2.7025

1.7732

2.7025

6.30

2.7025

0.8351

1.00

1331.B0

40.7523
3.4302
315X10
7.4928
3.2311
2.12
0.9238
6.35
12.46
■ 1.0977
107.52

38X15

9.2488-

23.00
313.D0

0.9599

2.409

0.5658

153.45

1.00

0.9599

92.72

3.6717

1.7732

315.00
12.353
0.715

101.818
0.9598
1331.90
4Z93B
2.18 -
1 J»-
1.00

4.660B

0.3463

4BJB9

n.a. Net svaBabJe. fm> Marint rata. " U.S. doQara per National Currency unit (a) Official ran. (c) Conunarclal rate. (!) Rnauchd rate-
(1) EgyptH-HoBting rate fixed daily by Central Bank of Egypt for Importers, Ezportera. Tourists. (2) Argentina— devalued by approx. 17 par cent 5/5/0*
(3) Somali: parallel exchange rates introduced July 1 — tor essential imports f4) So muff: t* aorta and Non-Es9ent|al Imports and Transfers.

(6) Malaw i d evalued 28/4/82. (BJ Ecuador— develus lien by 32 per cent 14/5/82. . .

tw* „ * '

1

1

BEE

r

r

fTSjfiv

Pound weak

THE POUND SPOT AND FORWARD

Sterling weakened as a result
of nervous reaction <to the fight-
ing earlier this week in the
Falklazrds, and probably required
some support from the Bank of
England In the afternoon. This
had more influence than the
hostilities in the Middle Blast,
with the pound failing to gain
much comfort . from Britain’s
North Sea oil reserves.

The dollar recorded mixed
changes, in quiet trading fol-
lowing the closure of several
major European centres. Includ-
ing Frankfurt, for a religious
holiday. ^ B

STERLING — Trade- weighted
Index (Bank of England) 90.4
against 91.0 at noon and In the
morning. 90.9 at the previous
close, and 90.3 six months ago.
Three-month interbank 12H per
cent (15& per cent six months
ago). Annual inflation 9.4 per
cent (10.4 per cent previous
month) — Sterling opened at
SI. 7760-1.7770, and was steady
around S 1.7725-1. 7750 ' for most
of the morning, before, falling
to a low of Sl.7590-1.7600 in the
afternoon, and dosing at Sl-7645-
1.7655, a fall of 90 points on the
day, the lowest level for nearly

two mdn-ths.

The pound fefl to DM 4.3575
from DM 42S50 against the
D-mark: (o FFr 11.11 from
FFr 11.17 against the French
franc; to SwFt 3.0350 from
SwFr 3.6525 in terms of the
Swiss franc, and to Y439.50 from
Y 44 1.50 against the yen.
DOLLAR— Trade-weighted index
117.2 against 117.0 on Wednesday,
and 107.0 sis months ago. Three-
roomh Treasury bills 1L295 per
cent (10.49 per cent six months
ago). .Annual inflation 6.6 per
cent (6.8 per cent previous
month) — The dollar fell to
DM 2.4110 from DM 2.4150. and
to FFr 6.2950 from FFr 6.2975,
Vuit was unchanged at
SwFr 2.0575. and rose to
Y249.10 frnm Y24R.TO.

FRENCH FRANC — EMS member
(third wcakesl). Trade-weighted
indpx 78 .9 against 79.7 on
Wednesday, and 80.8 six months
agn. Three-month Interbank 16-flr
per cent (15; per cent six months
ae*>). Annual inflation 13.9 per
cent (14.1 per cent previous
month) — The i>anr was slightly
firmer in the EMS yesterday, but

traded nervously beforq the
weekend on speculation about a
possible realignment of the
system. The Dutch, guilder rose
to FFr H36 from FFr 2.3567 at
the Paris fixing, and the D-mark
to FFr 2.6092 from FFr 2.6089.
Among other currencies- the
dollar fell to FFr &2960 from
.FFr 6.3010. and the pound to
FFr 11.1735 from FFr 11.1880.

BELGIAN FRANC — EMS
member (second weakest).
Trade-weighted index 95.0
against 95 J on Wednesday, and
1 (ML 2 six months ago. Three-
month Treasury bills 14{ per
cent (14£ Per cent six months
ago). Animal inflation 9.5 per
cent (8.4 -per cent previous
month) — The Belgian franc was
fixed at BFr 18.90 against the
D-mark at the Brussels fixing,
compared with BFr 1&89925 pre-
viously. The Belgian central
bank probably intervened to
keep the German currency
below its EMS celling of
BFr 18.9035. as speculation
increased against the franc ahead
of the weekend. Trading was
fairly light, however, because of
the religious holiday in Ger-
many. The guilder was also
strong, but other currencies
showed mixed changes, with the
dollar falling to BFr 45.6250
from BFr 45.66, and the Swiss,
franc to BFr 22.1735 from.
BFr 22.2230.

DUTCH GUILDER — EMS
member (strongest). Trade-
weighted index 115.1 against
115.0 on Wednesday, and 115.0
six months ago. Three-month
inter-hank SH per cent (lit per
cent six months ago). Annual in-
flation A.4 ner cent MU? per cent
previous month) — The guilder
remained very firm against
major currencies in general at
the Amsterdam fixing, although
the Be-leian franc — weaker^
member of the EMS — improved
sllehtlv aesinst the Dutch
nurem-v. The D-mark- fell to
FI 1.1059 frnm FI 1.1064. and
the French franc tn Fi 42.33 per
100 francs from FI 42.4L Out-
side . the EMS, the dollar
declined to FI 2.6690 from
FI 2.6750; the oound to
FI 4.73P0 from FI 4.7370: and.the
Swiss franc to FI 1.2995 from
FI 1.3023.

spread CloH One month

as. 1.7590-1.7770 1.7645-1.7655 0-2D-0.30c dk
Canada &2M0-&2380 2J2240-2J2S0 0.75-0.S5C tfia
Nathlnd. ABPrA.TSH . 4.69V4.7W, ISr-lVe pm
S0.10-8l.10 80.35-SJ.4S T7-27c <fi* '

Belgium 80.10-81.10
Danmark 14.4S-l4.b1

14.48Vt4.48>* 6-7ore dis

Ireland 1J22SO-1.2380 IJSHQ-IJBDO 0.68-0. 77p die

W. Gar. 4.24-4.29 . 4J5^-«k2fi^, - 1 VIP 1

Portugal 122JKM30.26 128.75-12925 S8-378C die

Spain 189.10-191.10 189.30-189.50 . EMOc dJs

Italy 2.349-i368 2U365-&3S7 IB’r-ZlVlni

Norway J0.79-10JH
Franco 11.08-11.18 .
Sweden 10.5T-1QJ58
Japan 438-444
Austria 29.800025
Switx. 3.61-3.66

10J2V10A3** 5 ,-2 3 ror» dis
ll.lOiz-ll.nix 22>i-25»jc dto
10 52-10.53 Vt’endk
439-440 2.15-1 -86y pm

29 .95-30 -DO 13V90TO pm
3331-3.64 • 2VZc pm' *

% Three %,
Owe month - ;mi. months p4.

0-2D-Q.30c dls -1.70 0g2-05Zdia -1.9?

0.75-0A5C dls -4*31 2-2S-2^Sdl» -4.13

IVIVepm 3.83 5-4^ pro - AhA

T7-27c die ' — 3JB3 65-75 die — 3AS

fl-7oredls ' -r5JB 17-Wi dm : —4 JO

0.68-0. 77 p die -7JJ9 1J97-2.14dla -6.70

1V1P* P«n M2 4 V3»a pm „ . 3.76

38- 373c die -22.14 313-9B8di* -20.17'
6080c die -4.43 250-285 die -6.65:
IB’r-ZlVIni «fic —10.19 60-64 die -WJ.S3
VZ^om dis -1 JO 4V5*. die -1J7

22V25i]Cd!s -26 JZ 43V-47%dle -16.47

h-1V>rodl* -1.14 2-24 As —030

2.15-136/ pm 6.46 6:<6-6.l5piR 5.73

13V90TO pm 4.50 28V20 pm 3J2A

2VZc pm' * 7.43 7-fiH pm 7M

W&M* l

Belgian rata Is for convertible francs,* Financial franc 87.75-87.85.
Six-month forward dollar 187-1. 37c die. 12-month 3J30-3.45c dia.

THE DOLLAR SPOT AND FORWARD

giSSgBfv

Jane 10 spread Clow One month

URt 1.7590-1.7730 1.7545-1.7866 0 JO-QJOc <TuT
Ireland! 1.4335-1.4385 1.4360-1.4380 0.OT-O.6Oc dis
Canada 1.2588-12620 1J610-1-2615 0.28-OJIc dl 9
NMilnd, 2.6620-2.5720 £8820-2-6860 1 30-1 30c pm
Belgium 45.55-4S.70 45 JSB-46JSJ 58c die

Thlko ■% :

P-a. months p.a.

—1-70 0J2-OJ98div -137
■-6J7 1.75-1.60 pm 4.63;
-281 0 JS-0.72dIe -2J22
- 5.64 4.03-3 S3 pm 6.93
-1.71 17-20 die -1.62

Belgium 45.55-46.70 45.55-45.57 58c die -1-71 17-20 die -1.62

Denmark 8-ZD608J23Z5 8-2050-8.2100 2.10-2J5oro die -3LZ5 SjB-S.TOdn -2.6E

W. Gar. 24040-2A2M 24105-2.4115 1.08-1 -Mpf pm 5 25 3.43-3.44 pm 5.73

Portugal 72 00-73 JO 73.00-73 JS BO-ZOOc dis -WJ1 150-625d1* -18.48

Spain 107.25-107.65 107 JO-107 JO 20-25odie -2JI 85-95 ifle . -3J5

Italy 1J32»r1^36>» 1J3X*r1J3Vi 9-10 fire die -8J3 28-30 tOa -8.68

Norway B. 131 5-6.1400 B .1350-6 -1400 OAO-oro pm-par 0.33 0-50-0.10 pm 0.18

France 6. 2850-6 JIM 6.2925-8-2975 12-13c die -2382 ZZV24dr* -14.77

Sweden 6-9620-5.9740 5.9630-68680 0.6& 8.4Oora pm 1.M 206-1 J5 pm 1.31

Japan Zfl8.7S-2A3.KJ Zfl9.0S-249.16 fJ7-1J7ypm 7JZ 4.82-4.72 pm 7.66

Austria 16-39-17.03 . 17.00-17.IJ 1 > 9V«*iflrp pro 6JS 28-25 pm 6J£3

SwiB. 2.0530-24)620 2-0670-2.0580 1.67-1 J7c pm. 3 J5 4.908J0 pm 9 J3

f UK and Ireland are quoted in U.S., currency. Forward premiums and
discounts apply to the U.S. dollar and not to. the Individual currency.

7JZ 482-4.72 pm 7.66
6J6 28-25 pm 6J3 -
9.45 4.90-480 pm 9.43

CURRENCY MOVEMENTS CURRENCY RATES*

Sterling.

Bank of Morgan '
} England tauamnty -
I Index Changes?

Sterling - I ao,*» —

U A dollar. - I17J +88

Oanadlan doUar«_ 86 J — 80.1 .

Austrian schilling..! 118.9 +86.0

Belgian frano.«~ — • 958 —18

Danish kronor — 83.4 —13.6

Deutsche mark..,. 183 J +5?- B

Swiss franc 144.8 + 94.0

Guilder.... 113.1 +22J

French franc. — .... 7BJ — 19.3

Lira- 65.9 -B8A

Yen ■■ 185.6 +*?-X.

Baaed on trade wel gM baa rt eangee tram
W a sh ingt on e g naaa n ent Decembarj 1971.
Bank of England mdn (base Mange
1976*100).

OTHER CURRENCIES

Fumimnn Alfc

Drawing

k«*u VJnHSll —

Currency *<■!

Ug Ms

.D.6S575Q

Units gES

r n_B5QRna nS

10-14, West Ur

r?*rrai-r imat,’.- .rlffi-'-i' 4iiBr

Canadian 8L. 15.87 -• 1 1 J5018

Austria Sch. 66* NJA ; 16.3054

■ Belgian F 14 ?60.E474 <49.8497

Danish Kr.... 11 1 9.13673 :.B,16104

D mark. 1 71s * N/A *8J9490

Guilder. B 2 .96280 2,64582

French Fr.— Sif .6J8906 6J4463

Um, . .. 19 1479.74 1383.16

Yen 6ii 275.633 B47J41

Norwgn. Kr. 9 6.81318 > 6.08861

Spanish Pts. 8 N/A 106J56

Swedish Kr. 10 6.6B163 5J92017

SwlM Fr ...... Ola 2.28310 2.04083

GraekDrich. 20% N/A .65J278

*CS/SDR rate tor June 9i 1.40376 •

EMS EUROPEAN CURRENCY UNIT RATES

B?la>an Franc ..
Danish Kr'in"
German p-NVrb'
French Fi9" ?
Dutch Gu l-.l;r ...
ttish Pun» ....
Italian Lira ..

44.6963

8.18382

2.41815

6.19564

2.67298

0.686793

1305.13

Currency
amounts
■gainst ECU
June 10

45 .2497

8.16104

2J9490

6.24483

2.64582

OJBOB13

1323.16

% change
from
central
rate

*4 change

adjusted for. Divergence
divergence limit %

divergence

+1J5

-OJ27

-0J6

+0J0

- 1.01

+0.59

+1J8

±1J440

±1.6428

±1.1097

±1.3743

+1J069

±1J6B»

±4.1242

Argentlno Peso.. .26.464 3
AustrsJIaDollar... 1.6950-1.6970
Brazil Cruzaino. - 293.10 894.10
Finland Markka^ 8.177-8,189 .
Greek Drachma»11B.764-117 JOT 4 *;
Hong Kong DoHari 10J9-10 J0i|

IranRial J. 146.90*

KuwaitDinariKD): 0JIHH54JD7SB
Luxembourg FrJ 80.35-80.43
Malaysia Dollar.. .

New Zealand Dir, 8.3 6 10 8 ^630
Saudi Arab. Rlyal 6.04-6.05
Singapore Dollar 13.7450^. 7 550 .
SthJifrican RandiUM40 z JK60 \
UjLe. Dirham.

19.000- lB.OOOf'
0.9625 DJI 630
166 Jl-167.04 -
4.6275A.6895
66.0086.50 ;
5.8400 -5.8460
88.76* !

0 .287 4-0 -2870 )
46J5B-48.S7 !
3.3246-2.3279 I
1.3255-1.3279 .
3.4275-3.4285 I
! 2.1260-8.1890 I
1.1015-1.1025 ■

Austria^...;

Belgium

Denmark

France

Germany —

Italy..

Japan—

Netherlands —

Norway—

Portugal

Spain

Sweden

Switzerland.

United States—.
Yugoslavia-

30.0630.35
87.90-88 J30
' 14.53 14.68
11 . 10 - 11^0
i 4^61 iA.S01b
:• 2330-8370
I 442447
| 4.704.76

10.83 10^3
187-137
I 185-192
1 10.84-10.64
> 3.63-3.67
; 1.7aia-l.7Bia
: 84-101

r;->r»7C5 ere lor ECU. therefore positive change denotes a
vt-.V currency. Adjustment calculated by Financial Times.

**Tho ram far June 9 ahouW have raad 117^50-117.738.
tNow one rate. *SeWng ratv.

EXCHANGE CROSS RATES c

June 10 Pound St' rlingi U8. Dollar , Deutsohem'k JapaneaeYanj FrenohFranoj Swiae Franc -Dutch Gulld’| Italian Lira CanadlaDollar Belgian Fran

Pound Sterling 1

U.S. Dollar j 0.867

Deutachemark '. 0H56

Japanese Yen 1.000 j 2.276

French Frank 10 1 0.600

Swiss Franc 0.879

Dutch Guilder 0.213

Italian Ura 1.000 ? 0.484'

Canadian Dollar 0.450

Belgian Franc 100 1.244

FT LONDON INTERBANK FIXING (t 1.00 a.m. JUNE 10)

6 months UA dollars

3 months U.S. dollars

bid 14 12/16 . offer 14 1S/16 f bid 151118 offer 15 8/IB

The fixing rates are the arithmetic means, rounded to the nearest one-
abdaanthk of the Wd and offered retaa for SlOra quoted by the market to five
refturanoe banka at 11 am each working day. The banks are National Wastmlnstnr
Bonk, Bank of Tokyo, Deutsche Bank. Banque Nationals do Paris and Morgan
Guaranty Trust.-

EURO-CURRENCY INTEREST RATES (Market closing Rates)

Dutch

Guilder

Danish

Yen

Krone

Canadian

Dollar

17-1B
17-18
173B-17S4
1714-1760
17-1730
17 17*

SDR ■••nked deposits: one month 14V15V per corn: thnw months 14Hi par cent: eix months 13V14 per cent; one yasr per oem.

ECU ir.k^d decosda: one month 17Hi-17^ per c ant three months 15V1S4, per cant; «ix months MV'MPu. P« cent; one yoar 13»».14»* per cctn.

Ai'rn t (co»<r\q rates m Singapore): one month Wu-W* per cent; three months 14V75 par cant; six month* 15>u- < l5’u per cent: one year 15V15*i» PW
cerri lon-Marm Eure dollar two years 15>«- | 1S J « per oent: three years iSV-lo 1 , per esne four yaera 15k,- 15 1 * par dene five ywre 15V1&S per cent: nominaJ otoemg
rsiei Sho'i-iQrm rates are cat) lor U.S. doMars, Censtken doMars and Japanese yen; others wo days' notice.

Tha lo'lcw.ng raw® were Quoted lor London defer cerudcatee of deposit: one+nomh 14.00-14.10 percent; three mondra 14.30ri4.40 per oen; eix months 14,56-
14 Cj par cent; ona year 14.66-14.75 per cent.

MONEY MARKETS

UK rates show little change

UK clearing bank base
lending rate 121 per cent
(since Jane 8)

Interest rates were little
changed in London yesterday in
generally quiet and featureless
trading. Short-term funds
tended to fall away after the
Bank of England -added funds
to the market with overnight
funds fn the interbank market
quoted as low as 1 per cent
after opening at 122-12} per cent.
Longer term rates still reflected
market uncertainty however
with rates from one week
through to six months showing
little variation.

The Bank of England forecast
a shortage ’ of £100m with
factors affecting the market in-
cluding bills maturing in
official hands and a net take-up

MONEY RATES

NEW TORVC

Prime rate 16-16 1 *

Fed funda (lunch-tuna) 13L-13',

Treasury bills {13-weBk) 11825

Treasury bills (36-week) 12.15

of Treasury bills — £213m, partly
offset by Exchange transactions
of . + £5Qm- The forecast was
revised to around £250m and
the Bank gave assistance In the
morning of £217m. This com-
prised purchases of £14m of
eligible bank bills in band 2
(15-33 days) at 12} per cent.
£10m in band 3 (34-63 days) at
12 g per cent and £177m in band
4 (64-84 days) at 12} per cent
It also bought £18m of Treasury
bills in band 4 (64-81 days) at
12} per cent.

Further assistance was given
in the afternoon of £17m,
making a grand total of £234m.
The afternoon help was made op
of purchases of £2m of eligible
bank bills in band 3 at 12} per
cent and £15m in band 4 at 12}
per cent

LONDON MONEY RATES

In New York (he Federal Re-
‘serve Bank added liquidity to
the market by malting 5700m of
customer repurchases. Federal
funds were trading .quietly be-
tween 13J-13} per cent. Activity
over tiie past few weeks has been
subdued as the market awaits
further developments over the
eventual size of the Govern-
ment's budget deficit require-
ments.

In Paris call money remained
at 16} per cent, and longer term
rates were also unchanged. The
closure of many European
centres kept trading at a com-
paratively low level, but there
was continued pressure on tile
French franc within the
European Monetary System.

Is Zurich the Government
announced its intention to issue
a further SwFr 200m of three-
month money market paper. The
previous batch offered on May
21 gave a yield of 2£8 per cent

I Sterling l

June 10 -Certificate j Interbank
1988 , of deposit

GERMANY

Lombard

Overnight rale ..

One month

Three months

Six months

FRANCE

Intervention rate
Overnight rate .

Ona month

Three months . .
Six nrenrbs

JAPAN

Discount rate

Call (unconditional)

Bill discount (three-month):

Overnight — -

2 days notice... [ —

7 days or. .T. • — . .

7 days notice...! —

One month .j lSro-lsa*

Two months,...: 187a-L2Ai
Three months,. 12H-18+*

Six months ! 12(3-12 fig

Nino montha...i 12ft-12Gs I

One year 12)4- 12to j

Two yeare. — .- — {

12 Ba 12 t b
12V1270
12V12t s
12V1270
UVUD

1870.13*

Iocs!

Authority

deposits

12 1* -rate

l£ie-123t

L2«t4iH(
12 Ja

EUROCURRENCIES

Eurodollars

steady

Eurodollar rates were mostly
unchanged yesterday in generally
subdued trading. Market atten-
tion remained focused on the
growing Middle Blast conflict
although the level of business
was restricted to some extent by
the closure of some European
centres for a holiday, including
West Germany. The D-mark
showed a narrower premium in
forward trading as a reflection of
the dollar’s weaker tendency in
the spot market while the Swiss ,
franc also slipped marginally
despite little change in Euro-
Swiss franc rates. Spot trading ;
saw the French franc lose further ,
ground despite a firmer trend in
Euro-French franc rates. Period
rates were all higher while one
week deposits were quoted up to
55 per cent. Elsewhere the dollar
eased against sterling in forward
trading to match a weaker
tendency by sterling in the spot
market. Euro-sterling rates -were
little changed.

Eligible ' Fine-
Bank ; Trade
Bills 4 Bills 4

■Local Auth-
negotloblQ
bonds

Finance

House

Deposits

Discount 1 . |

Company Market Treasury
Da posits Deposits "Sills *

—

- | 1-125* —

—

ilk j iais ■ \ -■

1330-13

123.

134 12*8 112«-1?*

127a

134 1 1230 12Sa-12Hi

134-127*1

12U-1XT0

m

— 124-124 124

ua-iasa

18+fc

— - 1 — j -i—

18-1290

ia«

- 1 = * 1 ■=•

Loud BMhoritias and finance houses seven .days' notice, other* seven days fixed. Long-term local authority mortgage
fates, nominally three years 13 3 , per cent; tour years 13*k per cant: five years 104 par cent. ©Bank MI rates In table
are buying rates tor prana paper. Buying rataa for four-month bank Ufa 12*ir12V par cenft tour months trade biffs
oar com.

Aporoiumet* *el8ng rota for one -month Treasury btris 12*».i2**i» oer cent; two 'months TSA-ta 0 *! per cent:, three
months l2Hr per cent. Approxwirota setting rats tor one month benk biWa 18«ra per cent.- two' months 12 tt w per cent
and three months 12 T » pgr cent on* month trade Mis 13 per cent: two months 12* par cant: throe months 12V par
sent.

Finance Houses Ban Bates (pubfefced by the finance Houses Ascooiaaon) «■ per cam from June 1 1682. London
end Scottish Clearing Bank Rates for fending -12V oer cent. London Peeri ng B ank Deposit Ratos tor sums at a even days'
notice BV per gent. Treasury BHIa; Average tender rates OR discount 12,6876 per cent.

Cernflcetea Of Tax Deposit ( Soria* S) 13 per cent from June' s. Deposits wrthdrawn for cash 104 par cent.

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London Branch: TW. (01) 508-0341

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44

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Builds Better

01 >886 8700

Fridav June 11 1982

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SCARGILL CLAIMS NCB HAS ‘HIT LIST* OF COLLIERIES

Miners’ threat over Kent

BY JOHN LLOYD, LABOUR EDITOR

A THREAT of country- wide

industrial action by the 211.000
mineworkers faces the National
Coal Board (NCB) if it does not
withdraw its proposals to cease
production at Snowdown Col-
liery. Kent

There is apparently no
intention to scrap the board's
plan, involving at least 500 re-
dundancies or transfers while
tunnelling is carried out to
open up possible reserves.

Mr Arthur Scargill. president
of the National Union of
Mineworkers. said yesterday
that the union's national execu-
tive had unanimously backed
the Kent area's resistance to
the plan. The executive's

decisions mean that it will:

• Demand an immediate meet-
ing with the NCB oyer the
future of Snowdown, -and raise
the issue again at the special
meeting with the board bn June
24 arranged to discuss new
projects.

• Call on the Kent area execu-
tive to withdraw its decision to
strike on June 19, in favour of
national action. This call is
almost certain to be endorsed at
a meeting of tbe Kent executive
today.

• Take a decision to call
industrial action at its next
executive on July 1 if the board
does not back down. The
recommendation for action will

then be put to the annual con-
ference in Inverness the
following week.

The resolution adopted by the
executive deliberately widens
the issue, saying, that the plan
for Snowdown is symptomatic
of a general attack" on pits in
Scotland, the North-east. York-
shire and South Wales.

Mr Scargill said the board
had a “ bit list ” of.pits in every
3rea, and that some 30 pits were
on a list for immediate closure.
He said that industrial action
would he taken -to preserve pits
and jobs.

The union's position means
that the NCB can no longer
expect to close pits— unless they

are completely . exhausted —
without courting the threat of
disruption. However, it hopes
that redundancy terms will be
sufficiently generous to tempt
mineworkers out of uneconomic
pits, thus diluting militancy.

Mr Scargill has written to
the rail and steel - unions,
partners with the mineworkers
in the “ triple alliance,” asking
for a meeting to discuss
“attacks upon us all” by the
Government. “.We must con-
front this monetarist mad-
woman and her Government,
which has challenged all three
unions.” he said.

BR unmoved by strike
threat Page 11

Leaflet

on Tebbit
Bill

By I vo Dawnay, Labour Staff

Argyll fund-raising offer spumed

BY RAY MAUGHAN

THE AMBITIOUS offer for
sale of shares by tender,
designed to raise at least £81m
to finance the acquisition by
Argyll Foods of Allied Sup-
pliers. has been largely shunned
by investors.

Samuel Montagu — the mer-
chant bank for Argyll, which
is headed by Mr James Gulliver
— announced yesterday that
applications had been received
for only 25m of the Ram shares
on offer. The merger with Allied
Suppliers, Sir James Gold-
smith's supermarket group, will
proceed normally because
about 250 City institutions
have agreed to sub-underwrite
the offer by accepting a guaran-
teed number of shares, what-
ever the outcome.

Argyll, Samuel Montagu and
the group’s brokers. Panmure
Gordon, all expressed surprise,
even shock, at the failure. Each
had been confident, at least
until Wednesday afternoon,
that the fund-raising bad been
well received. “ The institu-
tions we had canvassed that
afternoon had shown a high
degree of intent to apply."
Lord McGowan of Panmure
Gordon said.

Mr David Webster, finance
director of Argyll, said: “Janies
Gulliver and I saw a lot of
people in the last three weeks
and the reaction throughout
was very positive. We felt that
the only debating point was the
likely striking price.”

The tender had been pitched

at a minimum of 85p, which
would have raise*? fi81m. and a
maximum of lOOp to raise
£95m. Some three-quarters of'
the applications which were
received had been tendered at
more than fiOp. but such was
the low rate of subscription
that shares worth almost £60m
have been allotted to the sub-
underwriters. This is expected
to depress Overall stock market
activity today:

velopments in two wars, filtering
through on Wednesday evening,
had affected confidence, which
had drained away because of
self-feeding doubts about the
issue.

The first day of dealings has
been brought forward, by 24
hours to Wednesday June 16
because. Lord McGowan ex-
plained, “ the sooner we get
dealings going again the better."

Lord McGowan believed that
the “ tender system has slightly
confused the public.” He was
“ not sure that they would come
for it in droves.” But the over-
riding impression within the
company and among its financial
advisers was that news of de-

\ Having failed signally to
attract wide-ranging public sup-
port. the offer has been trans-
formed, as Samuel Montagu .put
it to a placing with institutional
investors. The striking price at
the lowest end of the tender
range compares with the pre-
vailing share price of 96p.

EEC textile deal moves run into trouble

BY GILES MERRITT IN BRU55EL5

EEC ATTEMPTS to negotiate
restrictive textile import deals
with the 28, mainly Third
World, countries covered by the
Multifibre Arrangement trade
pact are meeting determined
opposition from the exporting
countries.

The arrangement provides
the basis for most world trade
in textiles.

In the wake of the Indian
delegation's recent return to
New Delhi after inconclusive
bilateral talks with the Euro-
pean Commission, three other
countries are expected to break-
off their negotiations in
Brussels.

Hong Kong’s 17-man negotiat-
ing team is thought certain to

return home next week and
await fresh proposals from the
EEC because the Community
rejected a 12 per cent cut in
quotas for major categories of
clothing. This is expected to be
followed by Singapore and
Malaysia.

EEC negotiators said yester-
day that an “unscheduled”
second round of talks with some
of Multifibre Arrangement
exporting countries will need
to be held, probably in August
and September.

The officials said that tbe
likely departures of four hard-
line countries should not be
seen as a walk-out

'* With our mandate [from

EEC member-states] ” one
senior official commented, “ No
one expected a smooth ride."

The sudden emergence of
an unplanned second round
of Multifibre Arrangement
bilateral negotiations has
triggered speculation in Brussels
that the EEC may shortly feel
itself forced to request a new
and more liberal mandate from
the governments of the Ten if
a collapse of the 1982-S6
Arrangement is to be avoided.

countries.

Next week talks start between
the EEC and delegations from
South Korea, the Philippines
and some Lathi American textile
producing nations. Signs are
that in the present circum-
stances many will opt for a
second round of talks.

The EEC has also suffered a
reverse in its attempts to impose
reduced growth rates on a num-
ber of leading East European
textile producers. •

The ’Arrangement was
renewed last December after
lengthy negotiations in Geneva.
These centred on resistance by
the EEC to boosting imports of
textiles from low-cost exporting

Negotiators from Hungary,
Czechoslovakia and Romania
have returned to their capitals
for consultations before taking
part in further talks in Brussels
later in the summer.

Nato summit aims
to disarm critics

BY JONATHAN CARR IN BONN

THE NATO summit, the first
since 197S and the first to be
held on German soil, was
clearly intended to grasp the
initiative from critics in the
West of Nato policy, above all
among the young.

Even as seme 300,000 people
demonstrated in Bonn against
the nuclear arms race, the con-
ference issued what it called a
“programme for peace and
freedom.”

The Nato allies stressed that
they would never use force
except in self-defence, but that
they wanted a stable military
balance at the lowest negotiable
level. They urged the Soviet
Union to join in showing
“restraint and responsibility."

The main declaration was
flanked by two others, one list-
ing Nato proposals for cuts in'
nuclear and conventional
forces, the other stressing what
still needed to be done to ensure
that parity with the Warsaw
Pact was achieved.

The latter statement was not
formally subscribed to by
France, which alone of the 16
member-states is not part of
Nato's integrated military com-
mand structure.

France nevertheless went out
of her way to stress support
for the American military
presence in Europe and the

U.S. nudear “umbrella."

Tbe U.S. itself said it was
delighted with the declarations,
although specific figures, for
example, for increases in
Western defence spending
“were not included, as the
Pentagon had originally hoped.”

The West German hosts,
keen to pursue their
“Ostpolitik.*' were particularly
pleased that their allies for-
mally subscribed tbe aim of
“substantial and balanced East-
West relations aimed at genuine
detente."

However, in a statement in
the West German Parliament
yesterday before the main ses-
sion of the summit began.
Chancellor Helmut Schmidt
struck a warning note, <iirected.
not least at the U.S.

Herr Schmidt stressed that
“hi the global rivalry between
the systems of East and West
the ability to maintain economic
and social stability has a — and
I deliberately use this word —
strategic importance.

Lying behind the statement
are West German fears that con-
tinued economic recession in
the West, caused in Bonn’s view
not least by high U.S. interest
rates, will bring growing social
unrest, and thus could under-
mine Nato from within.

Continued from Page 1

Pound lower

Sterling’s Bank of England
trade-weighted index against a
basket of currencies slipped
from 90.9 to 90.4.

The dollar recorded mixed
fortunes in quiet trading with
several of the major European
centres closed for holidays.

In London it slipped against
the D-mark and the French
franc. It was unchanged against
the Swiss franc but up against
the yen. Its Bank of England
trade-weighted index, however,
increased from 117.0 on Wed-
nesday to 117.2.

Interest rates in Europe were

marginally firmer with six-
month Eurodollar deposit rates
up A of a point at 15} per
cent.

In the U.S. First National
Bank of Boston raised its prime
lending rate back up to 16} per
cent from 16 per cent

The bank said market condi-
tions apparently made it im-
practical for other banks to join
its move to the lower rate a
week ago so it had decided to
restore its rate to. 16] per cent-

The bank’s decision leaves
Citibank alone among the
major U.S. banks with a prime
rate of 16 per cenL

TEN THOUSAND Ieafieteers
armed with 9m leaflets took
to the streets, and to factories
and offices yesterday to press
home the unions’ case against
Mr Norman Tebblt’s Employ-
ment BilL
By the end of “Union Das’” Mr
Len Murray, TUC general
secretary, declared that the
opening shot in a campaign
to alert the public to the
dangers of the legislation had
been an overwhelming
success.

Across tiie country trades
councils and TUC regional
offices held briefings, con
ferences and workshops, while
outside, dQigenf activists
transformed a mountain of
propaganda into a litter
epidemic.

More than three-quarters of
Britain's 24,000 ■ dockers
inspired perhaps by their
fight with the 1971 Industrial
Relations Act, went on 24-
unofficial strikes, bringing
docks in London, Liverpool
and other ports to a standstilL
For the most part, the pro-
paganda war was conducted
at ma inlin e railway stations,
which some thought an un-
fortunate battleground on the
morning that announcement
of an indefinite rail strike
once again made headlines.

So far there appear to be no
candidates for the coveted
ride of first martyr to the
legislation.

However, Mr Moss Evans, gene-
ral secretary of the Transport
and General Workers’ union,
claimed with some pride last
night that he, with several
of his TGWU colleagues, had
been “moved on" by police
from their pitches at Water-
loo and Kings Cross.

Mr Murray found such a short-
age of takers outride the
Department of Employment
that he was reduced to shak-
ing your reporter's hand for
the benefit of the television
cameras.

A pair of ladies from the Salva-
tion Army passed by, with
eyes averted, on the other
side

But the highlight of the day
was when Mr Terry Duffy
complete with patent leather
pumps, put on an impromptu
tap dance for the assembled
spectators.

He was, he explained to the
• delighted audience, a BBC
pianist and no relation of the
.president of the Amalgamated
Union of Engineering
Workers.

Weather

Falklands Continued from Page 1

— was not severely damaged.
Another smaller landing craft
was bombed in a separate inci-
dent, killing four Royal Marines
and two naval personnel. • Five
naval personnel were injuhed
when bombs hit HMS Plymouth,
a Type 12 frigate.

The warship had been
damaged but remained opera-
tional, Mr Nott said.

• Mrs Thatcher warned last
night of “considerable casual-
ties ’’ in the attacks on Tuesday.
The Prime Minister said, at the
end of the Nato summit, that
she was not in a position to give
figures. But she added: “ We
think there must have been
quite a considerable number of
casualties. We do not know
precisely how many because you

FALKLANDS WEATHER:
Partly cloudy with W winds
force 6-7 and 12 ft waves.
Temps, low 30s. Good visi-
bility. OUTLOOK: NW winds
force 6 and 10 ft seas. Cloudy
with intermittent rain and
snow showers. Temps, mid-
30s. Visibility reduced in
showers.

have to locate every single
person before knowing how
many there are.” She said that
when the HMS Sheffield was
sunk, in early May, the Govern-
ment had released a casualty
figure which had to be in-
creased. .

BL and British Steel settle prices row

BY KENNETH GOODING. MOTOR INDUSTRY CORRESPONDENT

TH ROW over steel prices
between state-owned BL and the
British Steel Corporation, has
been settled.

All the UK car manufacturers
will *aow get their BSC steel at
a discount on BSC’s published
prices and BSC will retain a
major customer.

Neither side would comment
formally last night on the sensi-
tive issue, but it seems both
organisations are reasonably
satisfied with the resulL

Tbe Indications are that BL
will not be paying the full price
increase which BSC asked for
at the beginning of 1982.

However, a price rise has
been negotiated and BL. which
bought steel worth more than

£60ra from BSC last year, has
paid for all tbe steel delivered
so far this year, at the newly-
agreed 1982 prices.

BL was paying for deliveries
at 1B81 prices before the settle-
ment. The price difference had
a severe effect on BSC’s cash
flow.

EEC policy allows modest
discounts to be- -given on- a
producer’s published prices,
provided the deal is registered
with the European Com-
mission and does not relate to

one large customer, but only
to a class of customer.

Therefore. Ford, Talbot UK
and Vauxhall will all benefit
from BL'5 battle over prices.

Efforts to resolve the

dispute involved meetings
between Sir Michael Edwardes.
BL’s charman. and Mr Ian
MacGregor, chairman of BSC.

Sir Michael brought the row'
into the open when he said:
“We have to live in a com-
petitive world and respond to
tbe same market forces as our
competition. This means we
can not and will not accept
BSC prices."

The Government was in-
formed of the progress of
negotiations because any break
in BSC's pricing structure
might have. implications for the
commission's policy of securing
higher prices throughout' the
Community's steel Industry— a
policy which, the tJK Govern-

ment supports fully.

There was little chance of BL
being able to boy steel more
cheaply on the Continent while
the policy stood.

However. BSC was anxious
not to provoke a long-term
switch to another supplier by
one of its major customers,
whose.' demand for sheer steel
in particular is vital to the
operations in Sooth Wales.

The average for all price in-
creases by BSC this year was
12J per cent but there were
£uggestions that BL was being
asked for 25 per cent on some
products.

Tbe deal now struck fs likely
to be more in litre with the 12 J ;
per cent average.

UK TODAY

THUNDERY rain, becoming
brighter. •

London, Eastern and Central
England, Midlands, Wales.
Channel Is, S.W. Scotland and
N. Ireland ■ •

Cloudy with rain, becoming
brighter with showers. Max
20C (68F).

Rest of England, Borders and
Central Scotland
Thundery rain, becoming
brighter. Max 20C (68F).

Aberdeen. Orkney, Shetland and
N.E. Scotland *

Dry, sunny intervals. Max
16C (61F).

Outlook: Bright Intervals with
occasional showers.

WORLDWIDE

Y‘day

Y*day

midday

midday

•c

•F

•C «F

AjBCClD

S

25

77

Luxmbg. S

21 70

Algiers

—

—

Luxor . S

40 104

A ms dm.

c

19

06

L. Ang.t

— _

Athens

s

24

75

Madrid F

28 82

Bahrain

—

—

Majorca S

28 82

BaicWva.

s

25

77

Malaga S

27 81

Beirut

—

—

Malta S

29' 84

Betiapt

c

14

57

M'chKr. C

17 63

Belgrd.

s

28

82

Mettine.

— —

Betbn

F

10

SI

Mx. C.t

. — —

Biarritz

T

21

TO

Mi emit

— _

Bmghm.

R

17

03

Milan F

27 81

Blackfil.

C

17

63

Monirl.f

— —

Bordx.

C

19

66

Moscow F

7 45

Boulgn.

_

Muoiefi 5

23 73

Bristol

R

17

Nairobi

— — .

Brussels

S

21

70

Naples • S

S 77

Budpst.

F

28

79

Nassau

—

Cairo

Nwcatl. C

13 65

Cardiff

C

18

64

N York*

— —

CBS'b'ca C

21

70

Nice C

23 73

Cape T.

—

Nicosia . S

24 75

Cbicg.t

—

Oporto C

18 64

CoTogne

s

22

72

Oslo S

13 . 55.

Cpohgn.

s

14

B7

Parts . S.

25 77

Corfu

s

28-

82

Port*

^ —

Denver!

Prague F

21 70

Dublin

c

13

55

Ryfcpvk. -F

13 S3

□ brvnk.

F

25

77

Rhodes S

24 75

rdnbeft.

c

13

55

Rio J’ot

—

Faro

F

(24

75

Rome S

20 79

Florence

C

28

79

S&ixbig. F

24 75

FrarrlefT.

S

24

75

S’ciscot

Funchai

F

2*

75

S. Mritz,

— : —

Geneva

s

25

77

Singapr. ■

— — •

Gibrftr.

s

24

75

StcMvm. C

10 ' 50

13 55
17 63
8-46

GTag'w C
G'rtiMy C
Helsinki F
H. Kong
ktnebrk. S ,79,
13 . 55

l.o.Mwf C-Af&'SS
Istanbul F 2TJ2V
Jersey C 20,. 68
Jo’buri}

L. Pirns. — — -
.Lisbon F 2*- 75
.Locsmo S 26 7Sj
London C 17 G3i

S’uagot — —
Stresbg, S 25 77
Sydney. —
Tangier C- 33- 73
.Tel Aviv S 23 73
23 73

Tgn^jile F

ISSN.

,C — Cfotidv. F— Fair. Fi
R— Rein . S— Sunn
So Snow.
t Noon. GMT

. ■ ■£#.

THE LEX e ptipM

. -

..vi .

;■ .V » -

■ I-*-

s version

• . V- ■ ■’ -L

i /A ; 1

\fgr*

Last summer UK equity
prices 'went on. blithely rising
while other world stock
markets were in retreat, and
suffered a very nasty adjust-
ment in .consequence. It
wonid be too much to suggest
that the same was • happening
now, but certainly the 15 point
reverse in the FT 30-Share
Index in tiie last two days re-
flects to some - '* extent the
market’s sudden concern with
the weakness of Wall Street.
The Dow-Jones is down 8 per
cent in a month, and yesterday
First Boston reversed its pre-
mature prime rate reduction by
moving back up to 16} .per
cent.

After Tuesday's fall . in
British clearing bank base
rates, downward 'pressure on
interest rates in London has
evaporated. And - the feeling
of. exhaustion is increased by
tbe worsening of the general
news background, . in the
Middle East as . well as in the
Falklands, where unhappy
military news comes on top of
concern about the cost of main-
taining a large garrison.

One immediate victim of the
London market’s little shake-out
was yesterday’s Argyll Foods
offer for sale, which was only
a quarter covered. Curiously,
though, more than a third of
the modest level of applica-
tions fell in the top 5p of the
85p to lOOp tender range,
which gives some idea of tbe
difficult?’ of setting, a price.

The food retailing sector
stands some 5 per cent . above
its level of mid-May. when the
Argyll underwriting was done
at 85p, so it looks as though
general lack of enthusiasm for
the issue was more to : blame
than the state of the market.
The sub-underwriting was well
spread, but still some £69m of
reluctant cash must be found,
which is not going to help
prices over the nest week.

In the gilt-edged market
similarly, the new convertible
tap has been left stranded at
a level which puts a firm lid on
the prices of short-dated slock.
Bullish sentiment is stfiL reel-

Index fell 8.8 to 57875

iag from the news that the
Government Broker, Who/ re-,
mains staunchly independent of
all: U.S. banking groups, hs ta
stay open -for. business untH five
o’clock— clear ' proof ; of the
Government's determination to
compete with . the ' bun d in g
societies for fdnds.

■is- What to do-nCTt: -

sales ere in ■

Northern's, cnst ^stroetitte^i
alrrad^yerylead.^ig' Rbi^ S:
acquisition has yet^iwlej :

with Keystone»-ife-secqnii'majtir
US. purcbase.; f I3wbiijens^i 1 e re
looK.more auspkib^/ /-/ v ;

Hill Santt&i ^

Northern /Fobds

■ More is expected of Northerq
Foods than Of almost any"; other
company in- the- food /sec-.,
tor and a 20- per cent advance
in . interim profits, to £20.7m
pre-tax^ 4s- apparently not up to .,
scratch. The shares lost 6p yes- :
terday to, dose," at 150p.- Even
at tins level/ however,, the pros-
pective yield is not much above
5 per cent so- the market lias. a.
right to be fussy. There is; on
the face of it little in the' per-
formance during the. she months
to March' which;: would justify
Northern’s demanding. rating. " . -

Northern had the benefit trf
last year’s £41m . rights issue for
almost the whole /period.. and
gained perhaps film extra ^from
the equity accounting of its
Avana holdings. With Bluebird
Jin the U.S. improving slightly
'on last year’s, dismal first half,
there was precious little
advance in underlying /UKT-
prbfits.

Outside brewing, volume has’
been fairly bimyant. thanks in~
large measure to the strong,
relationship With Marks and '
Spencer. Yet maizes are under
heavy pressure almost ; across .
the "board. . Northern will spend:
around £100m oh"a«misitions
and .fixed assets this/ year,
having net debt equivalent ; to
about 40- per cent of share-.;,
holders’, funds by September/:

The seomd r half trading ipe&j
forroance will J certainly be/
better. Pork- Farms is retrie vi ng/
lost margins, milk products are •
well up and With good summer
weather around J4Sm pre-tax
looks .attainable. The problem

/Over the pgst twd.yeafcrHn]
iSamuel has

After-taX profils/jwdcta^fl^j 32
. per cent ihcresse tbfiiBto g* ^

• 12; months : to a '

" dismal 'decade.;: The-groutf^as
by how prqhi^/madet/^^a
more, obvious improv^nattsio
“its operation /arid .t hfeigo Cng will -
.'get harder.

business Hiil&amue/h^ s&fie/
biit-of prestigesyndicafedioans
into .Mhtte ; .speria&^/' ajnj
•higher' mar^ri, areas4odj as
.trade and; shipping" ; £itigh&W'
Weil 'personal* hians J bit of
•its- branch tbe

abolition . of ejritinge

it- has also been * able jo^Se

advantage of. the groWfoj&entha- :
siasm ' \ among' /Sis'/;' e&ep&e

teedfnteW-sfited.rihiiiorate-^eqt

portfolio; fozvfprWa& exchiiito .
Cover. - . / ’

. ’ Elsewhere-- 'there^ha* , heeir ’
steady imprOTetnenL/ T5» ; :tos
in insurance" brOfting has. been
halved to £fl.6nr_and^ there afe
prospects of ’

year,. In shippings seraca tk”
underlying profit increase imgf.
be- shout a /fltinL : whae^^j. :
ployee • benefit./services-'.
boosted by the capital -

ture;in_.tlte pijeyibiisr, / ' •/

The balance sheet looks satis-
factory and the /wrfwsre Hift
capital-hungry opmtionseerias
lo. have been redurecL/' Hlfl
Samuel is- ptaiuong ib boaKTup
its eri&ug' business
.expansion and acquisition' in .
"the cU-S^ Far ^Eart, JSt'aud

Nigeria/ and the matias ot lbc
shares may encourage ifiohse
its paper. *'• The *'boteonK ; : this
year may be. m' 1 the*> egfetf of
£17im:/ the/ -shares feli - .-fp

yesterday , to IfiOp. where ,tta
yield- is 7.4 per / . vj

/ : ■ -T

PRELIMINARY ANNOUNCEMENT 1982

l X- -

Year ended 31st March

Trading- profit
— Investment property
— Other ILK. activities
— Overseas:

U.SJL ,

Prance

— Discontinued activities

Interest •

Profit before tax
Dividend per share

1982

. , .1981 :

£nr

JSm .1:

2.9 ;

2 - 7

.V. ; 3.2 '■/

• ... « • ,i .

-

i.5 ; :

0.6

-7.7 :

my :

. f

7.3
. 5.2

y

2.1

j:

S,6p

/ 4.3p/

Following the completion of the acquisition of Whitlock, the U.Si . - - * -
retailer of DXY. autoparts, in November 1981, the group’s policy of'
concentrating on strengths and reducing participation in unrelated ; V'- '
activities through the re-deployment of the group’s assets is being r .

implemented. V - ■■-■■■■■ . -r-.r'-M

Since the year-end our brick manufacturing interestsEavebeen sold: -/:/•/>/
for £4.6m and the last phase of our withdrawal from engiheering-iias: - ’ : v -‘ /*'
now been initiated. In the last financial year, the pre-taxloss nfthese 1 7 $!>/'
- operations amounted to £0.74m. : - . '

In the United States, solid progress is being achieved both by ' K : -;i .v£
acquisition and-new store openings. Inthe-UJC' nnr Wi yadfty 1 / /V-
estates, after a qiiiet two years, are now enjoying some increase in~ / . •
demand and new lettings are being obtained. - /;

Inthe light of the results for the year,ithe directors have derided to-’

TPmmfnpnil a final ilimilpnd nfl Anna!- /Vnni . k_\ _i - 'l; ! \

-■-x- *-- -*-*- j e i uupiaiaxne course oi . ...

changing substantially its of activity and is now poised to taka

advantage of any upturn following a period of imprecedented
recession. . /' . .'

: • , Darid Ehe^ :

; ' ‘ iiChwman^ /: / 7/

LC.P. HOLDINCSpIc

Yr

i \

i

: ■ ■>.=

' • v

c?*'%

1

•Cf

po

„

Ml

■f?

" Reproduction a( th« contsats ol this wnw In *ny monns? t E nn, —^1-^- > -.v .-j
R eemwrod si th» Pose (mem. PnnUd by St. CIOmMCa

Bnckan Houm. Cannon Setml-; London- EC*P 4BY. a yr* ^ 1